Question

Does indian currency value increases when it depreciates

Answer 1

When a currency value depreciates,its value depreciates relative to other foreign currencies.Hence,in this case,Indian currency value decreases when it depreciates.

Explanation:

Depreciation of currency mainly applies to floating or free exchange rate market.It implies a decline or loss in the relative value of any currency with respect to other foreign currencies.Currency depreciation indicates that the value of any particular currency has decreases in comparison to other foreign currencies and the value of the goods and services exported by that particular country has become cheaper in international market thereby increasing their international market.Hence,the value of Indian currency actually decreases as it depreciates.