The U.S. dollar exchange rate increased from 0.96 Canadian...

The U.S. dollar exchange rate increased from $\$ 0.96$ Canadian in June 2011 to $\$ 1.03$ Canadian in June $2012,$ and it decreased from 81 Japanese yen in June 2011 to 78 yen in June 2012. Did the U.S. dollar appreciate or depreciate against the Canadian dollar? Did the U.S. dollar appreciate or depreciate against the yen?

The U.S. dollar exchange rate increased from $\$ 0.96$ Canadian in June 2011 to $\$ 1.03$ Canadian in June $2012,$ and it decreased from 81 Japanese yen in June 2011 to 78 yen in June 2012.
Did the U.S. dollar appreciate or depreciate against the Canadian dollar? Did the U.S. dollar appreciate or depreciate against the yen?

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Key Concepts

Exchange Rate

An exchange rate is the value of one currency for the purpose of conversion to another. It expresses how much of one currency is needed to purchase a unit of another currency, serving as a measure of the relative value of two currencies in the international market.

Currency Appreciation

Currency appreciation occurs when the value of a country's currency increases relative to another. In this context, if the exchange rate indicates that the domestic currency now commands more of a foreign currency than before, it signifies that the domestic currency has appreciated.

Currency Depreciation

Currency depreciation is the opposite process, where the value of a country's currency decreases relative to another. A depreciated currency will buy less of a foreign currency than previously, indicating a loss in its comparative value internationally.

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