#FedRateCutAffectsDollarTrend Reduced interest rates, a direct result of Fed rate cuts, spur increased capital expenditure (CapEx) by businesses. Lower borrowing costs make it more affordable for companies to invest in long-term assets like machinery, equipment, and infrastructure. This increased CapEx drives economic growth by boosting production capacity, improving efficiency, and creating jobs. As businesses invest, they stimulate demand for goods and services, further fueling economic activity. A growing and robust economy attracts both domestic and foreign investment, increasing demand for the dollar. Additionally, increased CapEx can lead to technological advancements and improved competitiveness, strengthening the U.S. economy's long-term prospects and bolstering the dollar's value.