Aside from factors such as interest rates and inflation, the currency exchange rate is one of the most important determinants of a country's relative level of economic health. A higher-valued currency makes a country's imports less expensive and its exports more expensive in foreign markets.

Is a higher exchange rate better?

What's better – high or low exchange rate? A higher rate is better if you're buying or sending currency, as it means you get more currency for your money. A lower rate is better if you're selling the currency. This way, you can profit from the lower exchange rate.

Does the exchange rate matter for trade?

A number of studies argue that exchange rates matter far less than they used to for trade, or even that they have disconnected altogether. The findings indicate that 10% real effective exchange rate depreciation implies, on average, a 1.5% of GDP increase in real net exports. ...