Strong Currency


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Strong Currency

A currency whose value compared to other currencies is improving, as indicated by a decrease in the direct exchange rates for the currency.

Strong Currency

A currency when it is worth more relative to other currencies. Because most currencies are floating, their values vary according to market trends. When one unit of a currency trades for more units of another currency, it is known as a strong currency. When a currency is strong, travelers are able to go abroad while spending less of their money, but it makes exports more expensive in other countries. A strong currency can be disinflationary for currencies pegged to it. See also: Weak currency, Exchange rate.
References in periodicals archive ?
Low inflation and a strong currency are behind the assumption.
The euro has started life as a reasonably strong currency, and this has lead to strong European equity markets as investors and institutions readjust their portfolios to ensure they are exposed to the new unit of currency.
It has become a stable currency and a strong currency." Mr Santer spoke at the Brussels stock exchange to mark the first day's trading in the new European currency.
In a statement, Singer said that the central bank is under no pressure to tighten policy, and added that it has room to cut interest rates because of a strong currency and weak consumer demand.
"The euro is poised to be a strong currency that could threaten both the pound and the dollar.
The bank also made a pledge that it would not change the rate until June this year because a strong currency and weak US demand are slowing an economic recovery.
So-called green rates have been around since the 1960s to protect EU farmers in strong currency countries.
Further, the bank maintained its pledge that it would leave the rate unchanged until June because according to it, a strong currency could affect economic growth adversely.
Mr Cash said the CBI originally supported plans for the creation of the euro based on the assumption it would be a strong currency backed by Governments with strict controls on public spending.
Buying power of Canadian banks are high because of a combination of factors such as falling prices of US banks and Canada's strong currency.
Most economists, even those within the rigidly no-saying Institute of Directors believe, for a number of reasons, that the euro will begin life as a relatively strong currency.
It is a complete myth that a strong currency structure is synonymous with a weak economy, which is the black picture painted by Rover Group.