Lower U.S. interest rates would tend to cause the dollar to:

Question

Quizplus · Accepted Answer

When interest rates in the United States decrease, the return on investments in U.S. dollar-denominated assets typically becomes less attractive to foreign investors. As a result, there is less demand for the U.S. dollar as investors seek higher returns elsewhere. This decreased demand can lead to a depreciation of the dollar relative to other currencies. Conversely, higher interest rates could attract more foreign capital, increasing demand for the dollar and potentially causing it to appreciate.

Lower US Interest Rates Would Tend to Cause the Dollar To