What do you mean by EXCHANGE RATE RISE ? with respect to a specific country?

Question

I am confused..is it mean that specific currency get appreciate or deppreciate with respect to other world currencies ?

Answer 1

you alredy have given the answer in your question

Answer 2

Rise In Exchange Rate

Answer 3

It depends at what angle you are looking from. For example, if your country's denomination is the dollar (US) and let us say that compared to the pound (UK) the rate changed from US $1.00=UK lb 1.20 to US $1.00 = UK lb 1.40, the UK lb experienced a rise in exchange rate, meaning its value compared to the US $ went up. Inversely, the US dollar depreciated because its value went down compared to the UK lb. Comparisons between currencies would vary. While one currency like the US $ might experience a decrease in value compared to the currency of other developed countries, it could at the same time exhibit an increase or appreciation in value compared to the currency of less developed countries with weaker economies. Exchange rate comparisons should be done on a case to case basis..

Answer 4

You are asking a very good question, and one that confuses even economists sometimes.

The way that financial markets and ecoomists handle this is to always add the phrase "for country X" when they talk about exchange rate appreciations or increases.

For example, an appreication of the US dollar is meant to say that it's an increase in the exchange rate from the US' perspective.

Hope that helps.