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General TradingD
Depreciation
Depreciation in forex refers to a decline in the value of a currency relative to another currency, driven by market forces of supply and demand. A depreciating currency makes exports cheaper and imports more expensive, and it differs from devaluation, which is a deliberate government action.
Example
“The British pound depreciated sharply against the dollar after the Brexit referendum, making UK exports more competitive but increasing the cost of imports.”