When the Federal Reserve cuts interest rates, the U.S. dollar often weakens. Lower rates make the dollar less attractive to investors, potentially reducing its value against other currencies. This benefits U.S. exporters by making goods cheaper for foreign buyers but increases import costs, which can contribute to inflation. At the same time, lower rates encourage borrowing and spending, which can stimulate economic growth. However, investors and markets react differently based on global economic conditions and financial trends. #FedRateCutAffectsDollar