During the Asian crisis in 1997, Asian currencies drastically depreciated affecting all of the economies. Asian countries had been on the rise and their exchange rates were pegged to the U.S. dollar. Therefore the exchange between the two was good. This created a lot of investors interested in getting into business with these Asian foreign countries. These Asian countries were successful so then they began to increase their own investments, and began spending more money, assuming that the economy would continue to be booming. This eventually led to their demise. They were overspending, and were hit hard when investors started to pull out of investments due to struggling economies. When this happened, these Asian countries were at a great loss. The first countries to suffer hard were Thailand and Indonesia. Thailand specificallym overly assumed that the economy would at least stay constant and not fall, as it did. This all occurred due to things such as the collapse of exchange rates. I think that another cause would be due to the U.S. When the United States economy was suffering itself, the country increased their exchange rates in order to get the economy back on track. This affected the Asian markets strongly as investors then began to pull out of deals they had with Asian countries. The rates were no longer profitable, and much too risky.

Personally, I believe that whether or not a currency is stronger or weaker than another country's currency is a catch 22. If the U.S. dollar had more value than other countries, U.S. goods would be more expensive for other foreign countries to import our products. this could result in less foreign investments from other countries that are not the U.S. But on the other hand, importing goods would be a less expensive route. So it really depends. If a country imports more than it exports, than it is better to have a stronger dollar. But in my opinion, I think that for the country that exports more, it is best to have a lower value of currency as you will have more countries wanting to import your materials because it is a better cheaper source for themselves. This in turn, increasing your profits.

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