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

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Presentation on theme: "‘Strong’ vs. ‘Weak’ Currency Exchange Rates: The price at which currency can be bought and sold."— Presentation transcript:

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

2 Weak DollarStrong Dollar Depreciated Value (foreign currency more valuable) Exports cheaper abroad (Balance of Trade improves) Imports more expensive Appreciate Value Exports expensive to foreign countries (who does that hurt?) Imports are cheaper (Trade Deficit)

3 US Balance of Trade; 1997-2004

4 US Balance of Payments; 2001

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

6 When was the US $ stronger?

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