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reply to Reduced demand for the US dollar has an impact on its value; that is, it lowers the value the currency has since it
reply to Reduced demand for the US dollar has an impact on its value; that is, it lowers the value the currency has since it makes the dollar less strong relative to other currencies. Due to the exchange rate, this will consequently have an effect on US businesses who desire to sell overseas because the value of the US dollar will be lower than that of the other country's currency. As a result, the value of the exports is decreased because, upon conversion back to US dollars, their worth will be reduced owing to the decreased demand. A higher U.S dollar value causes gas cost and prices to fall. Majority of gas prices depend upon the oil prices. All oil contracts are sold in the U.S currency; Saudia Arabia that sells the most in the oil production has converted is currency to the dollar when it pertains to oil profits. When the U.S dollar gains against the euro, so does the Saudia Arabia riyal. this causes the Saudia Arabia imports to be a lot cheaper. Therefore, the country can charge lower oil prices when the dollar rises but still receives the same profits from its imports
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