Rashika and Kanica were discussing about how the exchange rate between India and USA is rising day after day. According to you, what does rise in the exchange rate due to market forces of demand and supply mean?

Currency depreciation for India

Change in the exchange rate due to market forces of demand and supply means appreciation/depreciation of currency. Whereas, when the change is seen due to intervention by the government is called as revaluation/devaluation of the currency. As, due to market forces the currency exchange rate has rised, we will call it as depreciation of Indian currency and appreciation of American currency.