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🏠 Home › MCQs › International Current Affairs › Question

How does a stronger US Dollar affect the cost of dollar-priced commodities for foreign currency holders?

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By Zain

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Published 06 Feb 2026

A. Makes them cheaper due to currency parity.

B. Makes them more expensive.

C. Has no significant impact on the nominal price.

D. Decreases their industrial demand globally.

💡 Explanation:

Commodities like gold are typically priced in US dollars. When the US Dollar strengthens (appreciates), it means that a holder of another currency must spend more of their local currency to acquire the necessary dollars to purchase the commodity, thereby making the commodity effectively more expensive for them.

📚 Topics: International Current Affairs

🎯 Exams: CSS GEN PMS UK_CS US_COMP

🏷️ Tags: Commodity Markets Exchange Rates Forex Global Economics International Finance

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