Currency Volatility
As the US dollar changes in value, this creates uncertainty in contract negotiations. If the dollar were to change after a contract was signed, then one party to the contract would lose out on gains and the other party would win. As a currency falls, exporters gain benefits, because domestic products look cheaper to foreigners; the opposite is true when a currency increases in value.

When a currency increases in value when compared to other currencies, then the domestic currency can buy cheaper inputs from other countries. If a steel plant news minerals from around the world, they can get cheaper minerals if the domestic currency increases in value relative to the place that sells the minerals. - (edit / improve)

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