EXCHANGE RATE DETERMINENT

Exchange Rate Movement:

  •  Appreciation
          When the value of currency is increased with the respect of other currency value is called appreciation
  • Depreciation
          When the value of currency is decreased with the respect of other currency value is called depreciation

        Example: 
             1$=80RS  and next day 1$= 86RS  it mean the Rupee value is decrease than dollar

        Formula:
                              current rate -  previous rate
                                     previous rate
        
According to left side
    If increase appreciation


    If decrease depreciation