# U.S. dollar soars to two-decade high as Fed flags more large hikes | Reuters

> The US dollar rose to a fresh two-decade high after the Federal Reserve raised its policy rate by 75 basis points, as widely expected. The Fed also signalled further large increases and projected its policy rate peaking at 4.6% in 2023. Analysts expect higher-for-longer US rates to keep the dollar supported.

- Date: 2022-09-21 · published 2022-09-21T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/8605-u-s-dollar-soars-to-two-decade-high-as-fed-flags-more-large-hikes-reuters
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A stronger dollar makes US commodities more expensive for foreign buyers and typically weighs on dollar-priced grains, oilseeds and meals. Persistent Fed tightening also raises financing costs across the commodity complex.

## Read by commodity

- DXY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2022-09-27 | 5 | +2.6% | 3.4 | The Fed's 75bp hike on Sept 21 and its signal of a 4.6% peak rate lifted US yield expectations and pushed the dollar to a two-decade high, falling within the 5-day window. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2018-06-13 | [Dollar mostly firmer as Fed sees more U.S. rate hikes \| Reuters](https://feedsoft.ai/events/64708-dollar-mostly-firmer-as-fed-sees-more-u-s-rate-hikes-reuters.md) | +1.3% | +0.6% |
| DXY | 2022-06-14 | [Dollar index jumps to two-decade high as traders await Fed rate move \| Reuters](https://feedsoft.ai/events/7709-dollar-index-jumps-to-two-decade-high-as-traders-await-fed-rate-move-reuters.md) | -0.4% | +1.8% |
| DXY | 2022-04-25 | [U.S. dollar rises to two-year high; yuan tumbles \| Reuters](https://feedsoft.ai/events/4945-u-s-dollar-rises-to-two-year-high-yuan-tumbles-reuters.md) | +1.2% | +1.1% |
| DXY | 2023-06-23 | [Stocks fall, dollar up as investors weigh more rate hikes \| Reuters](https://feedsoft.ai/events/35674-stocks-fall-dollar-up-as-investors-weigh-more-rate-hikes-reuters.md) | +0.6% | -0.7% |
| DXY | 2023-03-02 | [Dollar firms after U.S. labor data suggests more rate hikes \| Reuters](https://feedsoft.ai/events/37076-dollar-firms-after-u-s-labor-data-suggests-more-rate-hikes-reuters.md) | +0.7% | -0.8% |

## Sources

- reuters.com: https://www.reuters.com/markets/europe/dollar-ascendant-investors-gear-up-fed-2022-09-21/

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