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The U.S. dollar will appreciate relative to the British pound, not depreciate. U.S. dollars will be able to buy fewer goods and services from Britain due to the inflation in Britain that is greater than inflation in the U.S. That will cause demand in the U.S. for British goods and services to decrease. The decrease in demand for British goods and services will cause demand for British pounds purchased in U.S. dollars to decrease. The decrease in demand for the British pound will cause the British pound to depreciate relative to the U.S. dollar. At the same time, the U.S. dollar will appreciate relative to the British pound.
The U.S. dollar will depreciate relative to the Swiss franc, not appreciate. The increased demand in the U.S. for Swiss watches will create an increased demand for Swiss francs purchased with U.S. dollars on foreign exchange markets. The result will be that the Swiss franc will appreciate relative to the U.S. dollar and at the same time, the U.S. dollar will depreciate relative to the Swiss franc.
The increased demand in the U.S. for Swiss watches will create an increased demand for Swiss francs purchased with U.S. dollars on foreign exchange markets. The result of the increased demand will be that the Swiss franc will appreciate relative to the U.S. dollar. At the same time, the increased supply of U.S. dollars on foreign exchange markets will cause the U.S. dollar to depreciate relative to the Swiss franc. U.S. dollars will be able to buy fewer goods and services from Britain due to the inflation in Britain that is greater than inflation in the U.S. That will cause demand in the U.S. for British goods and services to decrease. The decrease in demand for British goods and services will cause demand for British pounds purchased in U.S. dollars to decrease. The decrease in demand for the British pound will cause the British pound to depreciate relative to the U.S. dollar. At the same time, the U.S. dollar will appreciate relative to the British pound.
The U.S. dollar will depreciate relative to the Swiss franc, not appreciate. The increased demand in the U.S. for Swiss watches will create an increased demand for Swiss francs purchased with U.S. dollars on foreign exchange markets. The result will be that the Swiss franc will appreciate relative to the U.S. dollar and at the same time, the U.S. dollar will depreciate relative to the Swiss franc. The U.S. dollar will appreciate relative to the British pound, not depreciate. U.S. dollars will be able to buy fewer goods and services from Britain due to the inflation in Britain that is greater than inflation in the U.S. That will cause demand in the U.S. for British goods and services to decrease. The decrease in demand for British goods and services will cause demand for British pounds purchased in U.S. dollars to decrease. The decrease in demand for the British pound will cause the British pound to depreciate relative to the U.S. dollar. At the same time, the U.S. dollar will appreciate relative to the British pound.