If the exchange rate changes from $1.60=£1$1.60=£1 to $1.58=£1$1.58=£1, the dollar appreciates against the pound, whereas the pound depreciates against the dollar.
Suppose instead that the exchange rate changes from $1.60=£1$1.60=£1 to $1.62=£1$1.62=£1. This means that the dollar against the pound, whereas the pound against the dollar.
Options are appreciates & depreciates
Answers: 1
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If the exchange rate changes from $1.60=£1$1.60=£1 to $1.58=£1$1.58=£1, the dollar appreciates again...
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