A lot of people on the Internet refer to quantitative easing (QE) as a form of "legal money printing" when it is actually not. As such, many of these folks would thus erroneously say that QE leads to devaluation of the currency as a result of the increase in the supply of physical money. This is clearly not correct as QE increases electronic credit (in the form of their reserves) in commercial banks (as banks provide treasury bills and mortgage-backed securities in exchange), which they can then lend out to borrowers who require these funds.
QE aims to lower interest rates in the economy. I was wondering if the mechanism by which QE effects a devaluation of the currency is through the lower interest rates? That means to say, does QE cause the USD to depreciate because the lower interest rates disincentivises financial investments in the US. Hence, the demand for the USD falls as a result of less investors seeking for USD to buy US financial assets.