#FedRateCutAffectsDollarTrend Weaker Dollar May Increase Commodity Prices: A Fed rate cut can lead to a weaker dollar, which often results in rising commodity prices such as oil, gold, and other raw materials. As the value of the dollar falls, these commodities become more expensive for buyers using other currencies, potentially leading to inflationary pressures in the U.S. and affecting the overall strength of the dollar in global markets.