Currency traders have to take into account appreciation when making a trade, since a long-term currency option contract might see its value decline if the value of the underlying currency adjusts. Additionally, as a currency appreciates it becomes more expensive to buy that country's exports. This can cause a contraction in the economy, which can further impact the value of the currency.
Investment dictionary. Academic. 2012.
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currency appreciation — An increase in the value of one currency relative to another currency. Appreciation occurs when, because of a change in exchange rates, a unit of one currency buys more units of another currency. Bloomberg Financial Dictionary … Financial and business terms
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appreciation — Increase in the value of an asset. Bloomberg Financial Dictionary A rise in a currency s value. Chicago Mercantile Exchange Glossary * * * appreciation ap‧pre‧ci‧a‧tion [əˌpriːʆiˈeɪʆn] noun [uncountable] 1. FINANCE an increase in the value of… … Financial and business terms
Currency intervention — is the buying or selling of currency by central banks in an attempt to manipulate the price of a particular currency. Contents 1 Japanese Yen 2 Chinese Yuan 3 United States and the Great Depression … Wikipedia
Appreciation — is a term used in accounting relating to the increase in value of an asset. In this sense it is the reverse of depreciation, which measures the fall in value of assets over their normal life time.Appreciation is a rise of a currency in a floating … Wikipedia
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appreciation — 1) An increase in the value of an asset through inflation, a rise in market price, or interest earned. The directors of a company have an obligation to adjust the nominal value of land and buildings and other assets in balance sheets to take… … Accounting dictionary
appreciation — 1) An increase in the value of an asset, through inflation, a rise in market price, or interest earned. The directors of a company have an obligation to adjust the nominal value of land and buildings and other assets in balance sheets to take… … Big dictionary of business and management
Appreciation — An increase in the value of an asset over time. The increase can occur for a number of reasons including increased demand or weakening supply, or as a result of changes in inflation or interest rates. This is the opposite of depreciation, which… … Investment dictionary