Currency & Forex
Intermediate

Appreciation / Depreciation

The percentage by which a currency strengthens (positive) or weakens (negative).

Formula

App%=Rate1−Rate0Rate0×100%App\% = \dfrac{Rate_1 - Rate_0}{Rate_0}\times 100\%

Variables

Rate_1New value of currency
Rate_0Old value

Example

Currency rises 1.10→1.15: +4.5% appreciation

Did You Know?

A weaker currency makes a country’s exports cheaper abroad but raises the cost of its imports.

appreciationdepreciationforex