Strong Dollar or Weak Dollar?

Is a strong dollar good news for Americans? It depends on who you are. In April 2008, $1 bought only about €0.62; by September 2022, it bought more than €1. With made-up round rates, $100 buys €100 when $1 = €1.00 but only €80 when $1 = €0.80, so a strong dollar helps Americans traveling abroad, while a weak dollar makes American goods cheaper for buyers in Europe, which can help exporters. This video also covers importers (€100 of French wine costs $100 at the strong rate and $125 at the weak one), what a Federal Reserve vice chair said in 2015 about a stronger dollar pushing down import prices and inflation, and why most people are on both sides at once. It's a general explanation, not financial advice. Currency converter in our app: ▶ https://www.metric-conversions.org/currency/ Chapters: 0:00 The question 0:44 Two made-up rates 0:54 Tourists 1:18 Exporters and importers 2:06 Prices for everyone 2:32 Weighing it up 2:56 Takeaway Sources: • Foreign Exchange Rates H.10, historical data: Euro, Federal Reserve: https://www.federalreserve.gov/releases/h10/hist/dat00_eu.htm • Fischer, The Transmission of Exchange Rate Changes to Output and Inflation, Federal Reserve, 12 Nov 2015: https://www.federalreserve.gov/newsevents/speech/fischer20151112a.htm • What economic goals does the Federal Reserve seek to achieve?, Federal Reserve FAQ: https://www.federalreserve.gov/faqs/economy_14400.htm • Currency Conversion, metric-conversions.org: https://www.metric-conversions.org/currency/ Is there anything else you'd like us to cover? Let us know in the comments below.