For some reason, the nomenclature of “stronger” currency refers to more valuable currency, and “weaker” currency refers to less valuable currency.
One regularly hears news reports of the dollar being “weaker” against the yen or “stronger” against the euro, or some such. Yet there’s nothing inherently stronger about a more valuable currency. In a market where exports drive the economy (Germany, say, or China), a lower valued currency makes your products more attractive overseas. Switzerland has devalued its currency (making it “weaker”) as has Japan.
Yet, if you asked people what was better — a strong dollar or a weak dollar — they would overwhelmingly choose the strong dollar. Furthermore, people constantly worry about the specter of inflation — that the dollar in their hand will suddenly be worth less than it did yesterday.
Unfortunately, these perceptions lead to distortions in policy discussions, particularly with regards to the dollar. There’s plenty of evidence to suggest that setting inflation targets with a weaker dollar may actually be stimulative for the economy.
Just because the word “strong” appears before dollar doesn’t make the country behind that dollar any stronger.