What is Appreciating and Depreciating Currency?

When the exchange rate for a currency rises, so that the currency exchanges for more of other currencies, we refer to it as appreciating or “strengthening.” 

Related Topics

• What Does it Mean to Dollarize
• Foreign Exchange Market
• Who Demands and Supplies Currency in a Foreign Exchange Market? 
• Foreign Direct Investment
• Greenfield Investment
• Brownfield Investment
• Portfolio Investment
• Hedging
• Dealers in the Interbank Market
• Weak and Strong Currency
• Depreciation of Currency 
• Appreciating and Depreciating Currency
• Exchange Rate
• Real Effective Exchange Rate (REER)
• Limited Flexibility Exchange Rate System
• Expectations about Future Exchange Rates Shift Demand
• Expected rate of return shift demand and supply for a currency
• Relative Inflation Shifts Demand and Supply for a Currency
• Purchasing Power Parity (PPP)
• Relative Purchasing Power Parity
• Law of One Price
• Burgernomics
• Balassa-Samuelson Effect
• Arbitrage
• Tobin Tax
• Foreign Exchange Market
• Foreign Exchange Contract
• Arbitrage
• Hedge
• Why Central Banks Care About Exchange Rates
• How Do Exchange Rates Affect Aggregate Demand and Aggregate Supply? 
• What Causes Exchange Rate Fluctuations?
• Exchange Rate Policy
• Fixed Exchange Rate 
• Floating Exchange Rate
• Hard and Soft Peg
• What is a Merged Currency?
• Capital Control
• Exchange Stabilization Fund