The Fed’s ability to set the short-term interest rate independently of foreign financial conditions depends critically, of course, on the fact that the dollar is a freely floating currency whose value is continuously determined in open, competitive markets.
https://www.rba.gov.au/speeches/2017/sp-ag-2017-08-09.html  12/16  8/9/2017  Fixed Income Markets and the Economy | Speeches | RBA  Graph 12  The larger-than-expected declines in commodity prices (since 2012) had a marked effect on pricing in the bond markets and on the behaviour of resource companies.