What is a Weak Dollar?

A weak dollar means that the US dollar is losing value against other foreign currencies.
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A weak dollar means that the US dollar is losing value against other foreign currencies.

This is normally related to the strength of the economy.

It would indicate that the supply of the currency is greater than the demand.

A weak economy along with high inflation and budget deficits would usually be reflected with a weak US dollar. This can lead to less confidence in the currency, causing the demand for the US dollar to be lower than the supply.

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