1. A strong dollar is indicative of a strong economy, or at least an economy that generates confidence among currency investors. During those times when the dollar is strong, exports are more expensive overseas which may put a damper on those companies that are heavily reliant on exports. This, in turn, could lead to some job losses which might make it more difficult to sell homes in areas where there is a heavy dependence on such industries. On the other hand, companies that do lay off workers may inadvertently cause those workers to have to sell their homes at a somewhat distressed price. However, this is an extreme result of a strong dollar that has only limited applicability.
             More important to most home buyers and sellers is that a strong dollar is likely to be associated with a good economic environment, including low deficits and relatively low interest rates. It is this last part that matters to home buyers and home sellers. Low interest rates mean that for the same monthly payment, buyers can afford more expensive homes since less of their payment will be dedicated to paying the interest. Similarly, a weak dollar is likely to be accompanied by higher interest rates which will put a damper on home prices and which will also make it more difficult for people to qualify for home loans. This, in turn, reduces the number of people who are able to afford houses causing problems for both buyers and sellers (Evans, 2004).
             2. If someone purchases $100,000 worth of euros today, they will receive approximately 79,260 euros ("Real Time," 2006). This is because currently, the American dollar is weak relative to the euro, and has been for some time.
             There are obvious advantages to buying weak currencies. Europeans, for example, might purchase dollars-they receive 1.26 dollars for every euro-and then buy euros with those dollars when the euro falls. Since €100,000 = $126,000, if the euro falls to where €1=$.7926, th...