Lower interest rates, while considered good for economic growth, can hurt the dollar because they decrease the value of dollar-denominated investments.
When rates are cut in the United States, dollar-denominated investments become less attractive.
If so, it would make Treasury debt and other dollar-denominated investments less attractive.
At the same time, a drop in interest rates cuts yields on dollar-denominated investments.
Lower rates, while helping to revive the economy, reduce the return on dollar-denominated investments.
Lower interest rates would tend to hurt the dollar's value by making dollar-denominated investments worth less.
Lower interest rates will make dollar-denominated investment less attractive to foreign investors.
A rise would tend to bolster the value of dollar-denominated investments.
Lower rates and a recession both make dollar-denominated investments less attractive.
Lower United States interest rates make dollar-denominated investments worth less.