The relationship between Federal Reserve (Fed) rate cuts and the dollar's trend is complex and can be influenced by various factors. Here's a general overview: General Principles: Interest Rates and Currency Value: Generally, higher interest rates attract foreign investment, as investors seek higher returns. This increased demand for a currency strengthens its value. Conversely, lower interest rates can make a currency less attractive, leading to a decrease in its value. #FedRateCutAffectsDollarTrend