Question
The U.S. dollar has fluctuated in value against other currencies since the early 1970s. The value of a currency is determined by the supply and
The U.S. dollar has fluctuated in value against other currencies since the early 1970s. The value of a currency is determined by the supply and demand for the respective currency in a particular country. Discuss the factors that influence supply and demand for the U.S. dollar in foreign exchange markets. How do these changes affect consumers and businesses that operate only in the U.S.? In addition, consider recent events (those from the last two years or less) that may have affected the U.S. dollars strength or weakness. Examples include recent elections or government activity, U.S. debt and rating, interest rates, and the like.
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