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How has the dollar performed amid the trade tensions in 2019? What are the implications of the appreciation or depreciat...

How has the dollar performed amid the trade tensions in 2019?

What are the implications of the appreciation or depreciation of the dollar on the economy? what are the long-term effects?

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Answer #1

So far in 2019 dollar performed pretty well amid the trade tensions. It appreciated in comparisons to other major currency.

Appreciation of dollars tells that its position in forex market is strengthen which lead to cheaper import and costlier export.

If the dollar depreciate then it will help to the exporter and import will be more costlier.

Long term effects: In long term appreciation of dollar will hurt the local industry because the export will be costlier which will make local market less competitive and increase more pressure on the economy as whole.

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