Is a country's exchange rate rising to appreciate or depreciate?
1 direct quotation
A method of expressing a unit's foreign currency exchange rate in domestic currency. A simple understanding is that n functional currency = 1 foreign currency or n functional currency = 100 foreign currency. In this case, the exchange rate rises, the domestic currency becomes worthless, and the more domestic currency a unit of foreign currency can exchange. The fluctuation of foreign exchange rate is inversely proportional to the change of the value of domestic currency.
For example, most exchange rates in the market are set with reference to direct quotation, such as USD against JPY, USD against HKD, USD against RMB, etc.
2 indirect pricing method
A method of expressing the exchange rate of a certain unit of domestic currency in foreign currency. Simple understanding is 1 functional currency =N foreign currency or 100 functional currency =N foreign currency. In this case, the higher the exchange rate, the more valuable the local currency is, and the more foreign currencies can be exchanged in the local currency. The fluctuation of foreign exchange rate is in direct proportion to the change of the value of domestic currency.
For example, there are many exchange rates in the market that refer to the exchange rate under the indirect pricing method, such as: British pound against the US dollar, Australian dollar against the US dollar and so on.
The above are some of the contents of a country's exchange rate rise, I hope to help you.