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Finance Dictionary and Glossary of Investment Terms
Dollar that can be exchanged for a large or increasing amount of foreign currency. The strength of the dollar has an impact on imports and exports because goods and services from a foreign nation are usually purchased in the currency of the producing nation. For example, if the dollar were strong, one would expect imports to be high and exports to be low because the dollar will buy a lot in a different country while it is expensive to purchase dollars with outside currencies. Alternatively, with a weak dollar one would expect high exports and low imports. opposite of weak dollar
When the dollar can be exchanged for a large amount of foreign currency, benefiting travelers but hurting exporters.