strong dollar policy

Definition

A monetary policy that favors a strong foreign exchange rate for the U.S. Dollar (USD/AUD 1.35, which indicates that one U.S. Dollar will buy 1.35 Australian Dollars). A strong dollar makes imported goods more affordable for the American consumer, but makes U.S. exported goods more costly on the international market. Compare to Weak Dollar Policy.

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You should try and make sure that you know how a strong dollar policy works and look for a way to use it.

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The strong dollar policy was favored as we were mostly concerned with imports being cheap as were not overly concerned with exports.

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Some members of the congressional finance committee were questioning the Federal Reserve chairman on whether they were following a strong dollar policy after the dollar fell in the foreign exchange market.

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