how does one currency become stronger against another?

Question

The KRW-USD exchange rate is the worst it’s been for decades, and that’s not even factoring in inflation.

When traveling home this summer, basically, I’ll be earning 20-25% less than before.

Any simple explanations?

In: Economics

Answer 1

Let’s ignore money for a moment.

Say you are a rice farmer and want gold. You go to the local gold miner and offer 1 gram of rice in exchange for 1 gram of gold. He refuses, so you raise it to 10 grams. He still refuses, so you raise it to 100 grams. He still refuses so you raise it to 1.000 grams. He still refuses so you raise it to 10.000 grams. He still refuses so you raise it to 100.000 grams. He still refuses so you raise it to 1.000.000 grams… and so on.

KRW is the rice, USD is the gold.