Recent news has pointed to the dollar becoming stronger as of late, but most Americans do not understand what this means to them or to the economy as a whole. First, we should define that the “strength” or “weakness” of the dollar is a relative comparison to other currencies, such as the Euro or Japanese Yen. When the dollar becomes stronger, it means that if you were to trade in a dollar, you would be able to get more Euro than you would have before. There are both advantages and disadvantages to having a stronger or weaker dollar.
