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The US dollar isn't really tied to the strength of the economy either, it's about the supply and demand for dollars on the international market. Generally, doll
by foota 5y ago
The US dollar isn't really tied to the strength of the economy either, it's about the supply and demand for dollars on the international market. Generally, dollars are in high demand as a result of their status as a worldwide reserve currency, but otherwise the strength of the dollar should be tied to the trade deficit. Having a trade deficit, all else the same, exhibits downward pressure on the dollar because people buying foreign things in dollars give their money to people that need to then trade those dollars back to someone for their own currency.