What is the impact if strong home currency,on the home country?
My Friend, a strong home currency means that less of home currency is required to purchase the foreign currency than before. Example, $1=Rs 40 is weaker in relation to $1=Rs 35. In the latter less of Rupees is required to purchase Dollars. The impact of the home currency getting stronger is INCREASE IN IMPORTS because foreign currency becoming cheaper will encourage importers to import. The other impact is DECREASE IN EXPORTS because when foreigners will pay in their own currency less Rupees will be obtained on conversion.
