If the Fed cuts interest rates tomorrow, will the US$ become stronger against the CANADIAN $?
April 16th, 2008
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> Other - Business Finance > If the Fed cuts interest rates tomorrow, will the US$ become stronger against the CANADIAN $?
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No, in fact, the US dollar will probably weaken with respect to other currencies (assuming that the market hasn’t already factored the likely change into the rate). Lower interest rates make the dollar less attractive to foreign investment, making the dollar weaker.