Depreciation of Currency: means decrease in the value of country’s currency in comparison to other country’s currency due to market forces (Demand & Supply).
In Floating/Flexible Exchange Rate System :- if $ = 70 and if it increases from 70 to 74. Here, the value of currency of India will be decreased or price of foreign currency will be increased. [No Govt./Central Bank’s action].
Devaluation of Currency :- means decrease in the value of country’s currency (India) by monetary authority (Central Bank). [Govt. Intervention].
In Fixed Exchange Rate Regime: if $ = 70 and if it increases from 70 to 74. Here, export is cheap and import is expensive.