When the U.S. dollar appreciates in the foreign exchange market, U.S. exporters are harmed and U.S. importers are helped.

Question

Quizplus · Accepted Answer

When the U.S. dollar appreciates, it becomes stronger relative to other currencies, making U.S. exports more expensive for foreign buyers and thus harming U.S. exporters. Conversely, a stronger dollar makes foreign goods cheaper for U.S. consumers and businesses, benefiting U.S. importers.