Currency Strength

Currency

Definition

The relative value of one currency compared to others, measured through exchange rates and currency indices, affecting international trade, corporate earnings, and investment returns.

Key Points

Affects multinational company earnings
Strong currency hurts exports
Influences commodity prices and tourism

Examples

Strong dollar makes US goods expensive abroad

Weak currency boosts export competitiveness

Quick Info

Related Terms

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Dollar Index

A weighted measure of the US Dollar's value against a basket of six major foreig...

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