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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.
A wide range of factors interact to determine the exchange rate level: the government, market forces of supply and demand for a particular country's currency, interest rates, inflation, a country's balance of trade and/or payments, and consumers' expectations about what will happen in the future.