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?
In: 2
No, you’ve got it the wrong way around.
If the dollar and euro are worth the same, 1:1, $1 buys €1.
If the value of the dollar dropped, and $1 is worth a tenth of a euro, then $1=€0.10. the dollar dropped in value, so you need less euros to get dollars.
If the value of the euro increases, it wouldn’t be $1=€2. It would be $1=€0.50. you would be able to buy less euros with a single dollar.
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