AP MacroeconomicsInternational Trade & Finance
Currency Depreciation
Currency depreciation is a decrease in the value of a currency relative to another in the foreign exchange market.
It results from falling demand for the currency or rising supply, often driven by lower interest rates or weaker growth. A depreciating currency makes exports cheaper and imports more expensive, raising net exports. It is the opposite of appreciation.
Interactive graph
Exchange Rates →
Drag the curves and see it for yourself.
Study module
Exchange Rates →
Full lesson, practice questions, and flashcards.