Generally speaking, when a country's economy develops well and its GDP grows rapidly, its currency will appreciate. It can also be seen from the foreign exchange disk. For example, when the United States announces that GDP is improving, the dollar often rises again in an instant. The reason is that on the one hand, the economy is improving, which means that the domestic economy is attractive to foreign funds and attracts investors to invest their funds in their own currencies; On the other hand, GDP growth, at the same time, brings the expectation of inflation and the expectation of national interest rate hike, thus enhancing the value of domestic currency and attracting investors to buy domestic currency for investment. So as to make the domestic currency appreciate.
For this problem, we should make a concrete analysis. If the US economy does start to recover, investors' confidence in the United States will be restored, which will be good for the US dollar. However, if the Fed continues its quantitative easing policy and issues money in this way to stimulate the growth of economic data, the dollar will continue to fall.