Respuesta :
If the US dollar depreciate in the foreign exchange market , then US export will increase and its import will decrease.
Currency depreciation is the loss of a currency's value in terms of its exchange rate versus other currencies. Currency depreciation can occur as a result of economic fundamentals, interest rate differentials, political instability, or investor risk aversion. Currency depreciation allows forex traders to profit or lose as currency values fluctuate.
Orderly currency depreciation can boost a country's export activity by making its goods and services more affordable to consumers. However, an abrupt and significant currency depreciation may frighten foreign investors, who may withdraw portfolio investments from the country if the currency falls further. These moves will put additional downward pressure on the currency.
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