How do you compare dollar currencies to non dollar currencies? For example, as I compare the US dollar to the Euro I see that you'd get 1.15 US for 1 Euro. Wouldn't this mean that the Euro is stronger then? Another example, the rupee, its at 66.35 to 1 USD. How are you supposed to know which one is stronger?
>>1016501
Are you retarded?
>>1016501
I have no clue how that shit works
I assume dollar is stronger is because there is less inflation so that mean
1$ purchased same as $1.15 euro
Therefore dollar has more purchasing power
Therefore dollar is stronger
>>1016506
Yes.
>>1016512
1 USD = >1 X
USD stronger than X
1 USD = < 1 X
USD weaker than X
>>1016501
If 1 USD could purchase 1 Euro yesterday, but can only purchase 1/2 of 1 Euro today, the Euro is said to be 'stronger' and the USD is now 'weaker'. If the 1 USD could purchase 2 Euro's today, it is then 'stronger' than yesterday
I hate that I have to dumb it down to make sense
/biz/ - Business & Finance
>>1016546
What do you think currency is, faggot?
>>1016522
So how do you explain rupees? It can't be THAT bad compared to USD where a rupee would only give you like 0.015
>>1016560
>It can't be THAT bad compared to USD where a rupee would only give you like 0.015
1/66.35 = 0.015
1 US dollar has 66.35 times the value of a rupee.
1 rupee has 1/66.35 the value of a US dollar.
In the former you are dividing USD by INR, in the latter you are dividing INR by USD. It is like this no matter what the currencies are.
>>1016501
It's all based off the value of the USD price and how much other people are willing to buy using said USD. Since all majority currencies are fiat currencries it falls on the most powerful fiat currency, the USD.
>>1016560
0.000001/10
You have to look at income also. Imagine people making 1$ per hour in USA and 66.35 Rupee per hour in India
With a system like that you can't compare 1 - 1
That's assuming the $ you make for x time will get you equal goods also which adds another variable
Im high on adderall idk if that makes sense
>>1016756
Ah, so what you're saying is 66 rupees could be the cost of say, a bottle of water, whereas in the US a bottle of water is one dollar. So you'd have to know the purchasing power of non dollar currencies?
For interest sake, look up the Big Mac index. I know it sounds retarded, but I think this is what you're getting at.
google reserve currencies
How "strong" a currency is has almost nothing to do with its exchange rate against another
the yen, the swiss franc and the dollar are the strongest currencies there are because their value is very robust over time when compared to most othe currencies.
the euro is usually seen as strong, but since it's a currency that may not exist in 10 years time I would not call it a hard currency
Note that 1 yen buys almost nothing. Strength of a currency, I repeat, has nothing to do with how many numbers you need to buy shit in its national economy
