#FedRateCutAffectsDollarTrend Fed rate cuts can significantly influence foreign direct investment (FDI) into U.S. businesses, which in turn affects the dollar. Lower interest rates in the U.S. can make it more attractive for foreign companies to invest in American businesses, as borrowing costs are reduced. This increased FDI boosts demand for the dollar as foreign investors convert their currencies to invest in U.S. assets. Furthermore, FDI often brings long-term capital, technology, and job creation, strengthening the U.S. economy. A robust economy enhances investor confidence, further attracting foreign capital and supporting the dollar's value. Conversely, if global economic conditions or geopolitical risks deter FDI, even with lower rates, the dollar might not experience the intended strengthening effect.