How does it help? Or does it not? Who does it hurt? How does all of this work?
In: 1
A “strong dollar” (or any “strong” currency) means you have a favourable exchange rate against other currencies…your currency buys more of another currency than it used to, your ability to buy things internationally in other currencies has gone up.
It generally helps importers…they things they want to buy overseas become cheaper. It hurts exporters…their stuff becomes more expensive.
Note that does NOT mean that the exchange rate is a really big, or really small, number…the fact that 1 USD is worth about 1,000 Japanese yen doesn’t mean the USD is 1000 times stronger. “Stronger” or “weaker” refers to *changes* in exchange rates…if your currency is buying more than it used to, then it’s getting stronger.
Latest Answers