Question

Is a stronger dollar good for the U.S. economy? Describe who would be the winners and...

Is a stronger dollar good for the U.S. economy? Describe who would be the winners and losers from the appreciation of the U.S. dollar against the currencies of our major trading partners (Euro, Japanese Yen, Chinese Yuan, British Pound, Mexican Peso)? Explain and give examples.

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Answer #1

In my opinion strong dollar is not good for US economy because US is trying to redevelop it's industrial manufacturing base and a more affordable dollar rate makes products more affordable,. So, it will be better to keep it at an exchange rate that is moderate ,which allows US companies to buy and sell imports and exports respectively.

It is seen that other currencies of major competitor countries have consistently beaten US dollars, soothe winners would be major trading partners and losses will be the US dollar

Eg:- the Chinese yuan has gained 10 percent against US dollar since 2017 and it is more stable against a trade -weighted basket if currencies.

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