Post
Topic
Board Economics
Re: Rising USD prices
by
magneto
on 06/09/2018, 21:15:31 UTC
In the last few days, I looked at the exchange rate and saw an increase in USD in any currency so that some countries experienced inflation and crisis. I don't understand why USD can rise so high? Does this also affect the decline in the crypto market?  Huh Huh

USD going strong does not mean inflation.

Inflation is something internal to an economy, and essentially means a rise in prices due to the debasement of currency or easy credit. However, USD rising in relation to that particular currency doesn't necessarily mean that prices in that country is all of a sudden going to soar. Only imports from the US will increase in price, and that is only a small proportion of the goods on the market.

Nor does it mean "crisis", unless you're the one actively trading USD and holding a long position on it, because some countries actually actively devaluing their currency to be more competitive.