Stock investors closely watch the U.S. dollar after Federal Reserve rate decisions because currency movements impact corporate earnings, trade, and market sentiment. A stronger dollar makes U.S. exports more expensive for foreign buyers, potentially hurting multinational companies that rely on international sales. Conversely, a weaker dollar boosts exports and foreign earnings when converted back to USD, benefiting companies with significant global exposure. Rate cuts typically weaken the dollar by making U.S. assets less attractive due to lower yields, which can support stock prices, especially in sectors like technology and manufacturing. However, if the dollar weakens too much, it can raise inflation by making imports more expensive, potentially leading to higher costs for businesses and consumers. Investors also watch the dollar to gauge risk appetite. A stronger dollar often signals a flight to safety, which can coincide with market uncertainty, while a weaker dollar may indicate higher risk tolerance and a more bullish market outlook. Ultimately, the dollar’s movement after a Fed decision helps investors assess economic conditions, corporate profitability, and capital flows, influencing their stock market strategies.