Us Dollar Vs Strong Dollar Essay

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Over the years the US dollar has proved to be one the more superior currency in the world. The US dollar will always be as strong as it because it is high in demand. Especially when we are trading with other developed economies such as Japan or Europe. So with the relatively good economy, it has helped boost up the US financial markets, it has made the us more attractive to foreign capital. Even though the US dollar has proven its worth some doubt its strength. Some claim the dollar constantly loses its value while others protest that there has been no deflating and that if the US dollar continues at this rate it would become its strongest yet.
Strong and weak dollars are terms generally used to describe the relative value of the U.S. dollar currencies in foreign exchange markets. A strong dollar is a monetary policy that caters to strong foreign exchange rates for the US dollar. As stated in Investopedia, “A strong dollar would normally occur when the US dollar would rise to a level against another currency that is near historically high exchange rates for the other currency relative to the dollar”. A strong dollar basically makes imported goods more affordable for an American consumer and makes US goods more expensive on the international market.But with a
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Meaning the US dollar would have decreased in value to other currencies, making it to where the US dollar would be buying less of the other currencies. For example, which was simple stated by Investing Answer, “if you needed $100 to buy a gold coin yesterday, but today you need $110, the weakening dollar is causing you to pay more for the same amount of gold”. The dollar value is always fluctuating, so naturally when the dollar value rises our products would become more expensive overseas. So when it decreases you would see things like the price of gasoline, imported products, and employees’ wages

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