Why US dollar appreciates?
Overtime the US dollar does NOT appreciate. Most currencies lose their value over time. It is a totally normal and healthy process. Recently the US dollar has gained value relative to other currencies. This is due to the processes in the foreign exchange market and the recent liquidity crisis of the American dollar as the economy slows and money becomes "rarer".
If the Asian countries faces decline in economic growth how will their currencies values be affected relative to the us dollar?
When US interest rates rise the dollar appreciates or rises in value. Because our interest rates are increasing, other countries are buying our capital which causes the demand from US dollars to increase and increases the exchange rate, meaning it takes more of another currency to buy an American dollar.
Depreciation is when one currency becomes weak against another currency. Appreciation is when one currency becomes stronger than other currency. For example, imagine that current exchange rate is USD/EUR=1.42 and after some time it changed to USD/EUR=1.45, in that case US Dollar depreciated against Euro. If it changes to USD/EUR=1.38 in this case US Dollar appreciates against Euro.
currency appreciates means its value has increased in relation to another currency.If one US dollar is equal to 45 rupees, it simply means that in the US, if a dollar fetches 45 oranges while in India, a rupee would fetch only one orange of equivalent size and quality. Just like any other commodity, the currency of any economy is based on dynamics of supply and demand, and its value depends on trading in currency exchanges…