Why do people use the exchange rate of a currency as an economic indicator?

I'm from Kuwait and have constantly heard people speak of the Kuwaiti dinar with much awe. I genuinely don't see why it would mean anything either positive lr negative to have a currency with a fixed dollar exchange rate be expensive.

Things are simply priced in ways that account for the currency price. Rent for example is around 250KWD (813USD) and with all things considered, it's neither too expensive or cheap for similar economies nearby.