#FedRateCutAffectsDollarTrend Fed rate cuts can stimulate increased research and development (R&D) spending, which indirectly strengthens the dollar. Lower interest rates reduce borrowing costs, making it more affordable for companies to invest in R&D. Increased R&D spending fosters innovation, leading to the development of new technologies, products, and services. These advancements can enhance U.S. competitiveness in global markets, boosting exports and attracting foreign investment. A technologically advanced and innovative economy attracts capital, increasing demand for the dollar. Furthermore, successful R&D can create valuable intellectual property, generating long-term economic benefits and strengthening investor confidence in the U.S. economy.