Appreciation is defined as the increase in an asset’s price over time. Capital appreciation refers to the price increase of financial assets such as property, pensions, commodities, etc.
The stock price and perceived value of a quoted company might appreciate due to the company’s improved financial performance, investor confidence, and speculation. Alternatively, the stock price could depreciate if performance worsens affecting investor sentiment.
Currency appreciation refers to the increase in one currency’s value compared to another in the foreign exchange markets.
When the euro got launched in 1999, its initial worth was $1.16 U.S. dollars. Since then, the euro has appreciated and depreciated versus the dollar due to domestic and macroeconomic factors.