Strong and weak exchange rates
A strong economy could – in some circumstances (weak export growth, rising inflation) – lead to a fall in the value of the currency. Also, exchange rates can move due to market sentiment (e.g. correcting an overvaluation) that have little direct link with economic performance. From just looking at the exchange rate, it doesn't make sense to call a currency strong or weak. If I make a new currently, the Newey, and make 1000N = £1, that doesn't mean that the pound is any stronger or weaker, as the initial exchange rate is arbitrary. Lower inflation: A strong currency lowers the cost of imported goods, enabling lower prices for consumers. This leaves more money in their pockets for local expenditure. Lower costs for some exporters: those exporters that import raw materials from abroad in order to make their products, pay less for those materials.