# Forex markets: Dollar dented as coronavirus damage spurs interest rate cut bets

> The U.S. dollar slipped to a one-month low against a basket of currencies as investors bet the Federal Reserve would ease policy to counter the coronavirus outbreak. Futures implied a 50 basis point cut at the March 17-18 meeting, and U.S. manufacturing growth slowed in February.

- Date: 2020-03-02 · published 2020-03-02T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/7169-forex-markets-dollar-dented-as-coronavirus-damage-spurs-interest-rate-cut-bets
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expectations of Fed easing weaken the dollar, which can lift dollar-denominated commodity prices, while weak factory activity signals softer demand.

## Read by commodity

- DXY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2020-03-02 | 1 | -0.7% | -4.4 | On 2 March the dollar slipped to a one-month low as futures priced a 50bp Fed cut and US manufacturing slowed, which directly explains the one-day drop. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2019-06-20 | [Forex Market: Dovish Fed spurs dollar's biggest two-day drop in a year](https://feedsoft.ai/events/7434-forex-market-dovish-fed-spurs-dollar-s-biggest-two-day-drop-in-a-year.md) | -1.1% | -0.8% |
| DXY | 2019-10-31 | [Gold gains as dollar weakens after Fed's interest rate cut](https://feedsoft.ai/events/56483-gold-gains-as-dollar-weakens-after-fed-s-interest-rate-cut.md) | -0.1% | +0.8% |
| DXY | 2020-03-16 | [Dollar dumped after Fed cut, ball in BOJ's court for next coronavirus move](https://feedsoft.ai/events/54044-dollar-dumped-after-fed-cut-ball-in-boj-s-court-for-next-coronavirus-move.md) | +3.7% | +1.4% |
| DXY | 2024-08-26 | [Interest rates: US dollar sinks as traders position for rate cuts by the Federal Reserve](https://feedsoft.ai/events/28691-interest-rates-us-dollar-sinks-as-traders-position-for-rate-cuts-by-the-federal.md) | +0.7% | -0.0% |
| DXY | 2020-03-01 | [Dollar retreats as coronavirus fallout raises expectations of rate cut](https://feedsoft.ai/events/54508-dollar-retreats-as-coronavirus-fallout-raises-expectations-of-rate-cut.md) | -0.8% | +4.0% |

## Sources

- cnbc.com: https://www.cnbc.com/2020/03/02/forex-markets-yen-euro-the-fed-in-focus.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.