Why does the dollar rise?

 The dollar's value can rise for a number of reasons, including the following:

Rates of interest: Investors seeking higher returns may find the dollar more appealing when the Federal Reserve raises interest rates. As a result, the dollar's value may rise as a result of rising demand.

Economic expansion: Demand for the dollar can rise when the U.S. economy is expanding. A solid economy can draw in unfamiliar ventures, which can support interest for dollars and push up its worth.

Political dependability: Investors may flock to the dollar as a safe investment when there is political instability or uncertainty in other parts of the world because it is regarded as a safe haven currency. The dollar's value can also rise as a result of this.

Balance of trade: The dollar's value can also be affected by the trade balance. If the United States has a trade surplus, this indicates a greater demand for American goods and services, which may result in an increase in dollar demand and its value.

It is essential to keep in mind that global economic and political conditions, market sentiment, and investor expectations all have an impact on the dollar's value.