Comments on: If the dollar appreciates relative to foreign currencies, we would expect:? http://www.myylt.com/2008/05/02/if-the-dollar-appreciates-relative-to-foreign-currencies-we-would-expect/ Discussion of Forex Trading and Currency Trading Sat, 11 Feb 2012 19:47:26 +0000 http://wordpress.org/?v=2.3.3 By: Jon B http://www.myylt.com/2008/05/02/if-the-dollar-appreciates-relative-to-foreign-currencies-we-would-expect/#comment-2868 Jon B Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2008/05/02/if-the-dollar-appreciates-relative-to-foreign-currencies-we-would-expect/#comment-2868 D The reason is that as the dollar appreciates versus other currencies, American exports are more expensive for foreigners to purchase. If the price is higher, they will buy fewer American exports. D

The reason is that as the dollar appreciates versus other currencies, American exports are more expensive for foreigners to purchase. If the price is higher, they will buy fewer American exports.

]]> By: imirish11 http://www.myylt.com/2008/05/02/if-the-dollar-appreciates-relative-to-foreign-currencies-we-would-expect/#comment-2869 imirish11 Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2008/05/02/if-the-dollar-appreciates-relative-to-foreign-currencies-we-would-expect/#comment-2869 If the dollar appreciates, US goods become relatively more expensive compared to the rest of the world. US exports would decrease (because our goods become more expensive) and US imports would increase (because our dollars have greater purchasing power). If the dollar appreciates relative to a foreign currency, foreign exports will increase while foreign imports decrease. So in the US net exports, or the current account balance, will decrease while abroad net exports will increase. The answer to the question depends on which country is referred to by "a country's"... If the dollar appreciates, US goods become relatively more expensive compared to the rest of the world. US exports would decrease (because our goods become more expensive) and US imports would increase (because our dollars have greater purchasing power). If the dollar appreciates relative to a foreign currency, foreign exports will increase while foreign imports decrease. So in the US net exports, or the current account balance, will decrease while abroad net exports will increase. The answer to the question depends on which country is referred to by "a country's"…

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