Answer: A currency depreciates when it becomes less valuable in the foreign exchange market. For instance, if the exchange rate changes from 130 yen per dollar to 110 yen per dollar, the dollar has depreciated.
A currency appreciation is the exact opposite: A currency appreciates when it becomes less valuable in the foreign exchange market. For instance, if the exchange rate changes from 130 yen per dollar to 150 yen per dollar, the dollar has appreciated.
Using dollar as an exmplae, a rise in the exchange rate is an appreciation of the dollar, and a fall in the exchange rate is a deprecaition of the dollar. Example of appreciation: When the exchange rate of dollar to yen rise from 80 too 100 yen, the dollar appreicates. Example of depreciation: When the exchange rate falls from 100 to 80 yen, the dollar depreciates.
Answer:
ReplyDeleteA currency depreciates when it becomes less valuable in the foreign exchange market.
For instance, if the exchange rate changes from 130 yen per dollar to 110 yen per dollar, the dollar has depreciated.
A currency appreciation is the exact opposite: A currency appreciates when it becomes less valuable in the foreign exchange market.
For instance, if the exchange rate changes from 130 yen per dollar to 150 yen per dollar, the dollar has appreciated.
Using dollar as an exmplae, a rise in the exchange rate is an appreciation of the dollar, and a fall in the exchange rate is a deprecaition of the dollar.
ReplyDeleteExample of appreciation: When the exchange rate of dollar to yen rise from 80 too 100 yen, the dollar appreicates.
Example of depreciation: When the exchange rate falls from 100 to 80 yen, the dollar depreciates.