It is actually the purchasing cost of a currency in terms of other currency .
let's compare EURO with USD .
SCENARIO 1:
1EURO=1.355USD
It's mean the trader in UK is supplying 1EURO to to buy the exports of USA which has a worth of (1.355USD).
SCENARIO 2:
1EURO=0.5USD
Now trader in UK is supplying 1EURO to have only 0.5 USD which is quite drastic for that trader and in turn for the UK' ECONOMY as well .
If exports of USA has same value as before appreciation in it's currency value then trader in UK will have to pay more EUROS to have same amounts of exports of USA as can be had at it's lower amount .
Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
awesome
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Congratulations @shkusama! You received a personal award!
You can view your badges on your Steem Board and compare to others on the Steem Ranking
Vote for @Steemitboard as a witness to get one more award and increased upvotes!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit