#FedRateCutAffectsDollarTrend 1. Weaker Dollar – Lower interest rates reduce the return on U.S. assets, making the dollar less attractive to investors. 2. Capital Outflows – Investors may move funds to higher-yielding currencies, leading to USD depreciation. 3. Increased Risk Appetite – A rate cut can boost global market confidence, driving money into riskier assets instead of the dollar. 4. Inflation & Economic Growth Impact – If the Fed cuts rates to stimulate the economy, inflation concerns can further weaken the USD. 5. Short-Term Volatility – The dollar may react unpredictably based on market expectations, economic data, and Fed statements.