A »Currency exchange rate fluctuations can significantly impact international trade and investment. For example, if the U.S. dollar strengthens against the euro, American goods become more expensive for Europeans, potentially reducing U.S. exports. Conversely, European products become cheaper for Americans, increasing imports. For investors, a stronger dollar may decrease the value of foreign investments when converted back to dollars, influencing decisions on where to allocate capital.

A »Currency exchange rate fluctuations significantly impact international trade and investment. A strong currency makes exports more expensive, reducing demand, while a weak currency boosts exports but increases import costs. This affects trade balances and investment decisions, as investors seek favorable exchange rates to maximize returns.