Exchange rate indicies are lists of what each currency is worth in relation to another at a point in time. The worth or value changes daily/ hourly by factors of supply %26amp; demand on the world market. Many forces can influence the value of a currency. Political, Interests rates, Supply/Demand are some. Importers would like to buy cheap money when their own currency is worth more. For example, the Euro is worth more than the US dollar right now. So, a vacation is more expensive in Europe (It costs more US dollars to exchange Euros). However, Europeans will find a vacation in the US to be attractive because their Euros are worth more US dollars. This principle still holds true to IMPORT/EXPORTs.
Foreigners will find our US made products cheaper if their own currency is stronger than ours. Back in the 80%26#039;s the US enjoyed a stronger dollar. Thats when we imported alot of our goods from other countries.
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