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LeoGlossary: Weak Dollar

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A depreciated U.S. dollar with respect to other currencies, meaning that more dollars are needed to buy a unit of foreign currency.

The strength (or weakness) of the USD relative to other currencies affects trade. When the dollar is weak, imports become more expensive for Americans while exports get cheaper. This is of benefit to American businesses that ship their products out of the country.

This is the opposite of strong dollar which sees its impact in the reverse.

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