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‘Strong’ vs. ‘Weak’ Currency Exchange Rates: The price at which currency can be bought and sold

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Exchange Rates

Strong vs. Weak CurrencyExchange Rates:The price at which currency can be bought and sold

1Weak DollarStrong DollarDepreciated Value (foreign currency more valuable)

Exports cheaper abroad (Balance of Trade improves)

Imports more expensiveAppreciate Value

Exports expensive to foreign countries (who does that hurt?)

Imports are cheaper (Trade Deficit)US Balance of Trade; 1997-2004

US Balance of Payments; 2001

Which is strongest?Exchange Rates: The price at which currency can be bought and slod

When was the US $ stronger?