A depreciated dollar with respect to other currencies, meaning that more dollars are needed to buy a unit of foreign currency. Antithesis of strong dollar.
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The U.S. dollar when it is worth less relative to other currencies. Because the dollar is a floating currency, its value varies according to market trends. When one dollar trades for fewer units of one or more other currencies, it is known as a weak dollar. See also: Strong dollar, Exchange rate.
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A dollar that is of smaller value relative to foreign currencies. A weak dollar exchanges for fewer units of other currencies compared with the units for which it could have been exchanged in the past. A weak dollar tends to help U.S. firms that rely heavily on foreign sales because the firms' products will cost less in terms of the foreign currencies. A weak dollar hurts consumers of foreign goods because these goods cost more in terms of U.S. dollars. Compare strong dollar. See also exchange rate.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.