This is Steve Ember with the VOA Special English EconomicsReport.

The falling value of the dollar has become a major story ininternational finance. The value of a country's money is oftenthought to show the strength of its economy. But experts say this isnot always the case. Changes in the value of currency help someparts of the economy and hurt others.

When people go to foreign countries, they have direct experiencewith the exchange rate of money. International travelers must usetheir own money to buy the currency of the country they arevisiting. For example, Americans on holiday in a foreign country canbuy more currency when the dollar has a high exchange value.

So a high exchange value is good for vacationers. It is not sogood for exporting. A strong dollar means that American exports aremore costly. Other countries are less likely to import products fromthe United States because they are too costly. American agriculturalgoods, computers and airplanes all are more costly on the worldmarket when the dollar is strong.

However, sellers of foreign goods within the United States arehelped by a strong dollar. A strong dollar means that Americancompanies can buy more with the same amount of money. They can sellgoods at a low price in the United States and still make a profit.

This means that Americans can buy more. Low prices increasedemand for foreign goods in the United States. American companiesand individuals then continue to buy less costly foreign goods. Thishelps to increase the American trade deficit.

A weak dollar helps American companies that do business overseas.For example, the American computer industry gains because itsproducts are less costly to foreign buyers. Financial magazinesreport that technology companies like Intel and Microsoft haveincreased profits because of the weak dollar. Increased trade helpsreduce the American trade deficit.

The United States Commerce Department keeps information onAmerica's imports and exports. Information on the third quarter oftwo-thousand-three shows that America's trade deficit did fall.American exporters should gain the most from the falling dollar.But, the affect of the weakening dollar on the United States tradedeficit remains to be seen.

This VOA Special English Economics Report was written by MarioRitter. This is Steve Ember.