Question

When the dollar price of pounds rises, for example, from $1 = 1 pound to $2 = 1 pound, the dollar has ______ relative to the pound.

Answer 1

The dollar gains depreciated relative to the pound when the price of pounds in dollars increases, for instance, from $1 = 1 pound to $2 = 1 pound.

What is Depreciated relative?

Devaluation of a currency can take place in both absolute and relative terms. When the value of one currency declines in relation to the values of other currencies, this is referred to as a relative devaluation. For instance, the British pound sterling may be worth more today than it did yesterday in terms of US dollars.

A currency's value declines when compared to other currencies, which is known as currency depreciation. Political unrest, interest rate differences, weak economic fundamentals, and investor risk aversion are a few examples of the causes of currency devaluation.

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