Currency Depreciation vs. Appreciation: Definitions & Examples

Currencies trade against each other in the foreign exchange market, which is the biggest financial market by trading value in the world. 

What Are Currency Depreciation and Appreciation?

In the foreign exchange market, currency depreciation occurs when the value of one currency falls compared to the value of one or more other currencies. On the flip side, currency appreciation occurs when one currency gains value compared to one or more other currencies.

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