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Weak Dollar

Weak Dollar Definition

A description of the U.S. dollar when it is worth less relative to other foreign currencies.  Since the U.S. dollar is a floating currency, its value will vary according to market trading trends. A weak dollar means that more dollars are needed to buy a unit of foreign currency. Antithesis of strong dollar. 


Additional meaning of Weak Dollar:

A weak dollar will tend to benefit U.S. companies that depend heavily on foreign sales because these companies products will cost less in terms of foreign currencies. A weak dollar will hurt consumers of foreign goods due to the fact that these goods cost more to buy in terms of U.S. dollars.








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