The Federal Reserve's decision to cut interest rates has far-reaching effects on the value of the U.S. dollar. A rate cut typically weakens the currency as lower returns drive investors toward more profitable markets. The short-term impact may be a shift in trade balances and capital flows, as foreign investors respond to the more attractive yields in other countries. Economists suggest that such a policy might benefit U.S. exporters but hurt importers. Join the WikiFX Community Creator Growth Camp, share your insights on the topic, and win exciting rewards.