So hypothetically, if an exchange rate is 1:1, then $1 = €1, right? But if the value of the Euro increases, then it would (hypothetically) be 1:2, so $1 = €2, give or take.
So if that’s the case, then would a currency value *lowering* mean it would be converted for more money? IE: if the dollar drops suddenly, potentially with inflation, and is worth a tenth of the euro, then does $1 = €10?
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Currencies and economies are … complicated. To put it in very simple terms, a unit of money represents buying power. Let’s go with buying a commodity. A unit of wheat.
You can buy one wheat for $1. You can buy one wheat for €1. $1 = €1.
The € gets stronger. You need less € to buy the same amount of wheat. You can buy one wheat for 0.50€. $1 = 0.50€ since that’s how much you need to use to buy one wheat..
The dollar gets weaker, say thanks to inflation. It now takes $3 to buy one wheat. $3 = 0.50€.
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