When the Federal Reserve cuts interest rates, it sets off a chain reaction in the financial markets—one of the biggest effects is on the U.S. dollar. Lower rates make holding dollars less attractive to investors, often leading to a weaker USD against other major currencies. A declining dollar can boost exports by making American goods cheaper abroad, but it also raises import costs, potentially fueling inflation. For traders, investors, and businesses, Fed policy shifts are critical signals that shape market trends across forex, commodities, and even crypto. With the Fed hinting at possible cuts ahead, all eyes are on the dollar’s next move. Will it weaken further, or is the market already pricing in the shift?