How are currency fluctuations a barrier to trade?

Currency fluctuations can create uncertainty in international trade, as changing exchange rates can affect the price of goods and services. When a currency weakens, imports become more expensive, potentially leading to higher costs for businesses that rely on foreign products. Conversely, a stronger currency can make exports less competitive, impacting sales in foreign markets. This unpredictability can deter companies from engaging in trade, as they may face increased financial risks.