Strong Dollar Policy


Strong Dollar Policy

Any policy making the U.S. dollar worth more relative to other currencies. When one dollar trades for more units of one or more other currencies, it is known as a strong dollar. When the dollar is strong, American travelers are able to go abroad while spending less of their money, but it makes American exports more expensive in other countries. A strong dollar can be disinflationary for currencies pegged to the dollar. See also: Weak Dollar, Exchange Rate.