Weak American Dollar Research Paper
125 Words1 Pages
The strength of an American dollar depends on the value and strength against other currencies in the foreign exchange market. A weak dollar can be exchanged for only a small or decreasing amount of foreign currency. A weak dollar is usually seen as a bad thing because it does not stretch as far internationally as it once did. When we have a weak dollar foreign currencies buy more of our goods and services than we can buy of theirs. Therefore, a weak dollar has the ability to change the entire flow of trade that occurs when the dollar is strong. When the dollar is weak, America as a whole tends to export more goods and services than it imports.
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