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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.
The Impact Of Currency Conversions. The currency price of one country gets stronger and/or weaker against another country's currency on a daily basis, but what exactly does that mean for those who don't trade in the forex market? Currency exchange rates affect travel, exports, imports and the economy. In this article, we'll discuss the nature of currency exchange and its effect on people and the economy.