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Strong and Weak Currency: Who Benefits, Who is Hurt

Last updated 11 months ago

2 questions

What is a strong dollar?
• The value of the dollar rises compared to one or more other currencies
• More foreign currency is needed to purchase U.S. dollars
• The value of the dollar is appreciating

REMEMBER: A STRONG US DOLLAR MEANS OUR DOLLAR CAN BUY MORE FOREIGN CURRENCY!!!!

1

What is a weak dollar?
• The value of the dollar falls compared to one or more currencies
• More U.S. dollars are necessary to purchase foreign currency
• The value of the dollar is depreciation

REMEMBER: A WEAK US DOLLAR MEANS OUR DOLLAR CAN BUY LESS FOREIGN CURRENCY!!!!

1

Question 1

1.

Strong US Dollar

US Consumers
Foreign Consumers
US Producers
US Exporters
US Importers
US Investors

Benefits from a Strong US Dollar
Hurt by a Strong US Dollar

Question 2

2.

Weak US Dollar

US Investors
US Consumers
Foreign Consumers
US Exporters
US Producers
US Importers

Benefits from a Weak Dollar US Dollar
Hurt by a Weak US Dollar