Question

Based on current exchange rates (Links to an external site.), would you say that the USD is relatively "strong" against other currencies or relatively "weak"? Who benefits from a strong dollar? Explain your thought process, and explain why it matters.

Answer 1

Answer:-

According to the past few trends, the US dollar is actually getting to strengthen against all the major currencies and this means that the US dollar is relatively getting strong.If the dollar is actually strong, this means that the imports for United States will get cheaper and the exports of United States in other countries will get dearer. Similarly, if the dollar gets weak, the imports in United States can get dearer and exports get cheaper on the whole. Therefore, if the US dollar is stronger, US benefits from it and if it is weaker, other countries who involve in trade benefit from it.

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