What gives the dollar value?
Foreign Exchange Rate\n\n The first way to measure the value of the dollar is by how much the dollar will buy in foreign currencies. That's what the foreign exchange (forex) rate measures. Forex traders on the foreign exchange market determine exchange rates.
Why is the dollar value important?
The dollar is strong because the US economy is healthier than those of many other countries and because the Federal Reserve keeps raising interest rates. A strong dollar hurts stocks of US companies that operate internationally and may help stocks of companies that export products to the US.
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