Impact of home currency depreciation on the exports of a nation: Depreciation of domestic currency means fall in the value of domestic currency in relation to foreign currency due to market forces. For e.g., 1 US dollar = ₹80 (before) 1 US dollar $=₹ 82$ (after depreciation) As a result of depreciation of domestic currency, purchasing power of dollar has increased and purchasing power of Rupee has decreased. Now, 1 US dollar can purchase more of goods and services as Indian goods have become cheaper for US. It will lead to increase in Indian Exports.