#FedRateCutAffectsDollarTrend The global economy drives dollar fluctuations by influencing the supply and demand for the US currency. A strong global economy can lead to increased demand for the dollar, causing it to appreciate, as investors seek to invest in the US economy and take advantage of higher interest rates. Conversely, a weak global economy can lead to decreased demand for the dollar, causing it to depreciate, as investors become risk-averse and seek safer assets. Additionally, global economic trends such as changes in commodity prices, interest rate differentials, and trade balances also impact the dollar's value, leading to fluctuations in the currency market.