Expalin the effect of appreciation of domestic currency on exports ?

Currency appreciation implies that domestic currency has become more expensive in terms of foreign currency. For instance, if the exchange rate falls from $1 = Rs 50 to $1 = Rs 48 then we say that rupee has appreciated against the dollar. In such a situation the domestic country's export to foreign countries have become expensive (because now foreigners ca purchase only Rs 48 worth of goods instead of Rs 50 worth of goods). This reduces the demand for exports.

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Appreciation of the domestic currency occurs when the value of our currency increases in relation to the value of other currency. In this case ,If rupee appreciates US exchanges for (say) ₹ 48 ,instead of₹ 50 earlier. So, if we will export then exporters will earn lower revenue .For the export of each dollar, now the exporters will earn₹ 2 less.

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Appreciation of the domestic currency occurs when the value of our currency increases in relation to the value of other currency. In this case ,If rupee appreciates US exchanges for (say) Rs 48 ,instead of Rs 50 earlier. So, if we will export then exporters will earn lower revenue .For the export of each dollar, now the exporters will earn Rs 2 less.

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