The best approach to assess a currency’s strength is to look at its value over time with respect to other currencies. The fact is that comparing the value of one currency to that of another at a fixed point in time is useless. Even though the United Kingdom has a significantly smaller economy than the United States, one British pound has historically been worth more than one US dollar. The Japanese yen, for example, is recognized as one of the world’s strongest currencies, although it is only worth around one US cent. It is not always indicative of a stronger economy when one country’s currency is worth more than another’s.
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