Comparing the U.S. Dollar to the Euro

Financial Institutions Unit VI
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If we are comparing the U.S. dollar to the euro, and the euro increased in value from $1.35 to $1.45, what happened to the two currencies? Show the appreciation or depreciation rate for each currency. (Show all work/calculations/formulas.) If we are comparing the U.S. dollar to the yen, and the yen decreased in value from $.99 cents to $.90 cents, what happened to the two currencies? Show the appreciation or depreciation rate for each currency.
An increase in the exchange rates represents depreciation for the domestic currency when using direct quotations, meaning that the foreign currency appreciates as one would need more units of the domestic currency to purchase the foreign currency (Wang, 2009). Equally, an appreciation of the domestic currency implies that one can buy foreign currency using fewer units of domestic currency.
When the euro increased in value from $1.35 to $1.45, then the euro has appreciated while the U.S. dollar has depreciated
Appreciation
Appreciation {(P2-P1/P1}*100
Relative to USD, EUR Appreciated = {(P2-P1/P1}*100
=1.45-1.35/ 1.35*100=7.41%
Relative to USD, EUR Appreciated 7.41%
Depreciation
1 $ was equal to 1/35 Euros (0.74) which is P1
1$ is equal to 1/1.45 Euros (0.69) which is P2
Relative to the Euro the USD has depreciated as (1/1.35)- (1/1.45)]/ 1/1.35*100
= 0.74-0.69/0.74*100= 6.90%
Relative to the Euro the USD has depreciated 6.9%
On the other when the yen decreased in value from $.99 cents to $.90 cents, then the yen has depreciated while the U.S. dollar has appreciated
Appreciation
{(P2-P1/P1}*100
P1=1/0.99=1.01
P2=1/0.90=1.11
={1/0.9-1/0.99/ 0.99}*100= 10 %
Relative to JPY, USD Appreciated   10%
Depreciation
{(P2-P1/P1}*100
P1=0.99
P2=0.90
Hence {0.99-0.90/0.99}*100= 9.09%
Relative to USD, JPY Depreciated   9.0909%
What happens when a country’s currency rises in value compared to other currencies of other countries? Is this a good or bad event? And, why should consumers be concerned?
The rise in value of a country’s currency relative to other countries means that the appreciation will affect the purchasing power of the home country depending on either imports or exports. The appreciation is both a good and bad thing depending on the circumstances. The problem with a surging currency is that international investment returns are negative (Kelly, n.d.). In any case, when exporting goods the importing countries are likely to have reduced trade volumes as the exports to the country become expensive. The rise in the currency also means that companies with foreign operations will have lower earnings from foreign operations in the home currency. As such, for the consumers, when a home country relies on foreign operations for growth, there is likely to be a negative effect on the home country with the company forced to increase prices in cases of falling revenue
On the other hand, when purchasing foreign goods it becomes cheaper for the home country as they would spend less of their currency to purchase the imported goods or shop abroad. In any case, since the importing prices are lower there is l...