Definition of «weaker currency»

A weaker currency refers to a situation where the value of one country's currency is lower compared to other currencies. This means that it takes more units of the weakened currency to equal the value of one unit of another stronger currency. A weaker currency can make exports cheaper and imports more expensive, which could stimulate economic growth in the short term by increasing demand for domestically produced goods and services. However, over a longer period, persistent devaluation may lead to inflationary pressures as imported goods become more expensive.

Sentences with «weaker currency»

  • That's because foreign workers cost less since they are paid in weaker currencies. (thebalance.com)
  • Strong currencies make a nation's exports more expensive and imports from foreign markets cheaper, whereas weaker currencies make exports cheaper and imports more expensive. (vinsonfinancials.com)
  • The yen was the second weakest currency of the week, even though global bond yields fell, which should have provided support for the yen. (babypips.com)
  • (see all sentences)
a b c d e f g h i j k l m n o p q r s t u v w x y z