# Change in value of currency

An exchange rate specifies the value of one currency in terms of another currency.
$$\ell ( \theta ) = \sum _ { i = 1} ^ { m } \operatorname{log} p ( x ; \theta )$$

If USDINR falls from 70 to 60, it means value of 1$has fallen from INR 70 to INR 60 1$ is now worth only INR 60 against the previous value of INR 70
has depreciated against INR/ has fallen against INR
$has fallen below INR 70 vs INR $$\frac{a}{b}$$ To find how much$ has fallen against INR, we do the following calculation:
$$\frac{a}{b}$$

$$Change in USDINR(%)=\frac{New Spot Rate-Old Spot Rate}{Old Spot Rate}*100$$

                                           =((60-70)/60)*100=-16.67%


If USDINR falls from 70 to 60, it means only INR 60 is required to buy 1$against INR 70 1 INR is now worth more , that is 0.0166 against 0.0142 INRUSD has risen to 0.0166 from 0.0142 INR has appreciated against /INR has moved higher against$
INR has moved above/past Rs 70

To find how much INR has appreciated or risen against \$, we do the following calculation:

Change in INRUSD(%)=((New Spot Rate-Old Spot Rate)/(Old Spot Rate)) * 100

                                             =((0.0166-0.0142)/0.0142)*100=16.9%


Whenever depreciates against INR, it also means INR appreciates against

The following table summarizes the above idea: