What effect does depreciation of domestic currency have on foreign trade?

It encourages export of the domestic country

Depreciation of currency is the increase in the exchange rate of 2 countries due to market forces of demand and supply. It encourages the exports of the country. Depreciation of domestic currency make exports cheaper for the foreign country residents, due to which the exports of domestic country increases. Goods which were available at 1 dollar for the foreign residents are now available at 1/2 dollar only because the domestic currency had depreciated ( earlier 1 dollar = Rs70, now 1 dollar = Rs140). Similarly, the imports become expensive for the domestic country, which results in decrease of imports. Earlier we had to pay Rs70 for importing a product worth 1 dollar, now that will increase to Rs140 due to depreciation of domestic currency.