When the United States dollar becomes stronger, then foreign goods and services become cheaper for Americans, while goods and services from the United States will become more expensive for foreigners, causing imports to rise and exports to decline.
A weaker dollar causes the reverse scenario: more expensive imported goods and services decreases imports, while cheaper American goods and services increases exports.
Thus, the trade balance
of any country is largely determined by the value of the domestic
currency in relation to other currencies. However, when the foreign
exchange rate of a currency changes, it takes at least several months
before it has any effect on the volume of imports and exports.
Yes, Focus will be on strong US Dollar,
For instance, if the dollar suddenly weakens, the U.S. trade balance will usually worsen for a few months. Immediately after a currency’s value drops, the volume of imports remains about the same, because most import/export orders are taken months in advance, but the prices, which are listed in domestic currency, rise. On the other hand, the value of the domestic exports remains the same, and the difference in values worsens the trade balance until the imports and exports adjust to the new exchange
Please best my answer if helpful. Thanks :)
Content will be erased after question is completed.