An increase in the dollar price of foreign currency constitutes an appreciation of the U.S.currency.

Question

Quizplus · Accepted Answer

An increase in the dollar price of foreign currency means that it now takes more dollars to buy the same amount of foreign currency, which means that the value of the dollar has decreased relative to that foreign currency. This is known as a depreciation of the U.S. currency. The opposite would be an increase in the foreign currency price of the U.S. dollar, which would constitute an appreciation of the U.S. currency.

An Increase in the Dollar Price of Foreign Currency Constitutes