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As noted earlier, a change in the exchange rate can, in the short run, affect the demand for and supply of commodities, and the competitiveness of US agriculture. When the US dollar strengthens or gains in value, it causes importers to pay more for the US dollar to buy US commodities.
How do changes in national interest rates affect a currency's value and exchange ... All other factors being equal, higher interest rates in a country increase the value of that country's currency relative ...urrency valuations are determined by the flows of currency in and out of a country. A high demand for a particular currency usually means that the value of that currency will increase.