currency depreciation for USD = appreciation for Euro?

CFA Level II
#1

seems true?

#2

relative to USD/EUR quote

#3

yes if you are talking about USD vs. EUR only (1 pair). USD can depreciate against other currencies and still appreciate against EUR, which case it would mean that EUR depreciates against USD.

#4

USD/EUR of say 1.4 goes to 1.2 — USD appreciated, EUR depreciated USD/CAD of 1.4 goes to 1.2 – USD appreciated, CAD depreciated… but anything could have happened to the Eur

#5

mcf Wrote: ------------------------------------------------------- > USD/EUR of say 1.4 goes to 1.2 — USD > appreciated, EUR depreciated > > USD/CAD of 1.4 goes to 1.2 – USD appreciated, CAD > depreciated… but anything could have happened to > the Eur I don’t think so. In this case, DC is and you can buy less goods from Europe, so depreciates, $ appreciates. Right, am I?

#6

USD/EUR of 1.4 means it takes USD 1.4 to purchase EUR 1; if that rate moves to 1.2, it now takes fewer USD to buy that same 1 EUR, therefore the USD has appreciated.

#7

!#%^*&^ read it wrong again: 2 instead of 1.2.