But most exchange rates aren’t fixed—they’re “floating,” meaning their values constantly change depending on various economic factors. As of June 2023, one U.S. dollar is the equivalent of about eighty-two Indian rupees. Twelve years ago, a dollar was worth fifty rupees. And a little over forty years ago, you only needed eight rupees to get one dollar. Over time, the value of the rupee has depreciated, or gone down, making it worth less. Sometimes a currency that depreciates is described as getting weaker because you can buy less foreign currency with it. On the flip side, the Israeli new shekel was worth just nineteen U.S. cents in 2003, but its value has grown over time, trading in for twenty-seven cents in June 2023, a 42 percent increase. Over this time period, the shekel got stronger or more valuable; in other words, the currency appreciated.
