# US dollar drops to three-week low as Fed rate hikes nearly done

> The dollar hit a three-week low on Monday after Federal Reserve officials signalled that the central bank is nearing the end of its tightening cycle. Market expectations for rate hikes were reinforced.

- Date: 2023-07-10 · published 2023-07-10T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/9980-us-dollar-drops-to-three-week-low-as-fed-rate-hikes-nearly-done
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expectations of an end to Fed hikes reduce the dollar's yield advantage and tend to support dollar-denominated commodities. The move is modest and primarily reflects Fed rate expectations.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-10-26 | [US dollar drops to three-week low as traders weigh a Fed pivot - Moneyweb](https://feedsoft.ai/events/39327-us-dollar-drops-to-three-week-low-as-traders-weigh-a-fed-pivot-moneyweb.md) | +0.0% | -2.8% |
| DXY | 2021-02-11 | [Dollar slides near two-week lows as Fed pledges low rates](https://feedsoft.ai/events/48817-dollar-slides-near-two-week-lows-as-fed-pledges-low-rates.md) | +0.5% | +1.2% |
| DXY | 2019-12-11 | [Dollar slips to 4-month low as Fed holds rates, nixes hike hopes](https://feedsoft.ai/events/55754-dollar-slips-to-4-month-low-as-fed-holds-rates-nixes-hike-hopes.md) | -0.6% | -1.0% |
| DXY | 2020-02-29 | [US dollar dives to 7-week low against yen on Fed rate cut hint \| Malay Mail](https://feedsoft.ai/events/54819-us-dollar-dives-to-7-week-low-against-yen-on-fed-rate-cut-hint-malay-mail.md) | -0.8% | +4.0% |
| DXY | 2023-11-02 | [US dollar retreats as risk appetite rises, Fed rate hikes seen as done](https://feedsoft.ai/events/33079-us-dollar-retreats-as-risk-appetite-rises-fed-rate-hikes-seen-as-done.md) | -1.4% | -3.1% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/dollar-softens-china-inflation-data-takes-centre-stage-2023-07-10/

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