Currency Appreciation & Depreciation
Track how the value of your money changes against foreign benchmarks. This tool calculates the precise percentage of appreciation or depreciation between two exchange rates.
The starting price of 1 unit of foreign currency
The ending price of 1 unit of foreign currency
What is currency appreciation?
Currency appreciation is an increase in the value of one currency in relation to another. For example, if the US Dollar strengthens against the Euro, it takes fewer dollars to buy one Euro.
What is currency depreciation?
Currency depreciation is a decrease in the value of one currency in relation to another. If a currency depreciates, it means its purchasing power in foreign markets has decreased.
How is the percentage change calculated?
The percentage change is calculated as: [(New Rate - Old Rate) / Old Rate] × 100. A positive result indicates appreciation of the base currency, while a negative result indicates depreciation.
Why do currencies appreciate or depreciate?
Key factors include interest rate changes, inflation, economic growth, political stability, and trade balances. Higher interest rates typically attract foreign investment, increasing demand and causing appreciation.