Question

Based on current exchange rates, would you say that the USD is relatively "strong" against other currencies or relatively "weak"? Explain your thought process, and briefly state why it matters.

Answer 1

I would state it is relatively strong. E. G while India grew strongly in recent years its currency rupee still depreciated from 1dollar=45 rupees few years ago to 1dollar =70 rupees(approximately). Also in recent years usa economy has picked steady growth trend. This appreciated dollar

It matters because it influences usa competitiveness in world economy and terms of trade of usa. Also it determines level of exports and imports, domestic employment, capital flows etc