Under the floating exchange rate system, a fall in the market price of a currency is called:

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Under a floating exchange rate system, the value of a currency is determined by the market forces of supply and demand. A fall in the market price of a currency, meaning it is worth less in the foreign exchange market, is called depreciation. Devaluation refers to a deliberate decision by a government to decrease the value of its currency in relation to other currencies. Appreciation refers to an increase in the value of a currency, and revaluation refers to a deliberate decision by a government to increase the value of its currency in relation to other currencies.

Under the Floating Exchange Rate System, a Fall in the Market