#FedRateCutAffectsDollarTrend A Fed rate cut typically leads to a weaker U.S. dollar due to several factors: Lower Investment Appeal – Reduced interest rates make U.S. assets less attractive to investors, leading to capital outflows and decreasing demand for the dollar. Increased Liquidity – A rate cut signals an expansionary monetary policy, increasing the money supply and potentially devaluing the currency. Market Sentiment – If markets anticipate the cut, the dollar may weaken in advance. However, an unexpected cut can trigger a sharper decline. Economic Outlook – If the cut boosts economic growth, it may offset some downward pressure on the dollar, depending on investor confidence. #FedRateCutAffectsDollarTrend