: 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

The exchange rate is just the cumulated history of that currency, as reevaluations happens by factors. Being “strong” means stable, not having a low rate.

Basically: can the amount X of currency get you the same goods today as tomorrow (=1 year, 10 year, 50 years, …).
Of course no one knows the future. Stability is a sign of trust into the capabilities of their economy to handle expected future challenges.

(No economy will be able to handle an upcoming alien invasion, but then it is also not very likely)