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An increase in the trade weighted value of the US dollar would most likely lead US consumers to buy more goods from foreign countries.
What is trade-weighted value of the U.S. dollar?
The trade-weighted dollar is a measurement of the foreign exchange value of the U.S. dollar which is compared against other certain foreign currencies.
When there is an increase in the value of the dollar, then the imports to the U.S. become less expensive, on the other hand exports to other countries become more expensive.
As a result, any increase in the trade-weighted value of the U.S. dollar will result in buying more goods from foreign countries.
Learn more about the trade-weighted value here:-
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