Currency Strengths and how they're worked out, and what they do?

Question

ive never understood:

1.) How currency strength is worked out

2.) What it does. Eg why does the falling value of the dollar mean that people like me (from uk) should buy, for instance, property in america?

cheers all

Answer 1

because one day like the great depresion of  the 30s this will end! property values in america will skyrocket and right now its a buyers market

Answer 2

Countries can devalue their currancy and print more money if they want to. A bank note is a promise by the government to pay the bearer on demand. However a promise is only a promise and the country may decide not to honour its promises, or it may go bankrupt !

This has happened when countries go to war and overspend .

The strength of a currency is governened by confidence by investers that their money is safe.

The more confidence in the market place the more investers will prefer to have dollers.

As to the falling doller verses sterling well a british pound will buy more dollars when the value of the american doller falls so house prices become cheaper for british buyers paying in sterling.