- 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