Low exchange rate effect on exports
The balance of trade impacts currency exchange rates as supply and demand can lead to an appreciation or depreciation of currencies. A country with a high demand for its goods tends to export more A lower-valued currency makes a country's imports more expensive and its exports less expensive in foreign markets. A higher exchange rate can be expected to worsen a country's balance of trade, Exchange rates affect the economy by changing the price of exchanging or investing in other countries. For example, when the exchange rate of one country rises relative to another, they are now