: How are some currencies stronger than others even when their exchange value is low?

Question

For example, 1 Kuwaiti dinar = 3.26 USD = 266 INR, but the USD is strongest of them all

In: 9

Answer 1

There is no strong/weak currency in the sense you are thinking of. There is just an exchange rate which happens to be at a particular ratio at a point in time. There are actually benefits to having a “low” exchange rate – i.e. a business selling to a nation with a “high” exchange rate gets paid “more” once they convert to domestic currency. So sometimes (exporting) nations actually want a “low” exchange rate.