Foreign Exchange Market -

 Foreign Exchange Market - 

• The buying and selling of currency

• Appreciation
• Value of the currency is strong
• The dollar buys more of another currency which results in less expensive imports and more expensive exports
• Imports increase because they are cheaper and it creates a trade deficit

• Depreciation
• Weak dollar
• The dollar buys less of another currency which results in more expensive imports and less expensive exports
• Brings about trade surplus

• Two Graphs
• US Market
• Other Market