Speaking "Economics"
A Blog...

... for conversations about the sometimes confusing vocabulary of economics and how to teach it.

From chapter 20, section 3.
Speaking Economics: Media and the Dollar

When people hear a newscaster say, "the value of the dollar is down," they often assume that the phrase refers to inflation. They may be right, because the domestic value of the dollar does go down when prices go up. But the phrase usually refers to the value of the dollar with respect to other currencies. The reference is to exchange rates - that is, to the value of the dollar vis-á-vis other currencies.