Save US Fed Excess Reserves (Yearly Change) vs. DXY Index
Fed's excess reserves have a highly negative correlation with the DXY index. (Y-axis is reversed for excess reserves in this chart.)
Excess reserves can be seen as an indicator for USD liquidity, with which it has a negative correlation. When Fed began to cut rates, implement open market operations, or purchase short-term debts, liquidity increases.
Fed's Excess Reserves (Yearly Change, L)2021-033,721.30 b
US Dollar Index (R)2021-05-1890.11