Who are the winners/losers of a weak/strong U.S dollar? Explain why
With a strong dollar, the U.S. dollar buys more of other currencies than usual. Whit the term weak dollar we mean the decrease in U.S. dollar value compared to other currencies so that the U.S. dollar buys less of the other currencies. For example, if there was going to be more rapid inflation in the U.S. than in Japan, there will be an increase in demand for the yen, which will appreciate relative to the dollar ceteris paribus. On the other hand, if the U.S. currency is going to rise, people will buy more of that currency, pushing up the price.
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