Question

Describe what it means for one currency to be rising against another currency. Explain how Europeans vacationing in the United States benefit when the euro is rising against the dollar.

Answer 1

When the value of a currency A is rising against another currency B, it means that currency A is appreciating against currency B. This happens when there is a higher demand for currency A in country B, than the demand for currency B in country A.

When Europeans go on vacations in the US, and the Euro is appreciating against the US dollar, it means that 1 € will purchase more US dollars (at least a bigger fraction). So things here will be cheaper for them.

Answer 2

For example, if the Euro was Rising against the dollar that would mean the Euro was being used more than the dollar and rise of value of a Euro would increase and the value of the dollar would decrease. Europeans would benefit because they would be able to use the same currency they use in Europe back here and their value of currency would be equal here.