Exchange Rates Exchange rates affect our economy and each of us because. 1)When the dollar appreciates (strong dollar), the dollar becomes more valuable relative to other currencies。 Foreign products become cheaper to us. U.s. products become more expensive overseas。Exchange Rates Exchange rates affect our economy and each of us because: • 1) When the dollar appreciates (strong dollar), the dollar becomes more valuable relative to other currencies. – Foreign products become cheaper to us. – U.S. products become more expensive overseas