I am having an enormous amount of confusion on exchange rates.
If for example , i have an exchange rate of £/$=1.10, i know that with one pound i can buy 1.10 dollars. First question: So can the exchange rate be written as 1.10$?.
Now, in terms of appreciation and depreciation:
lets say that the exchange rate increases to £/$=1.20.
On investopedia i read that: As a rule of thumb, the increase or decrease of a rate always corresponds to the appreciation/depreciation of the base currency, and the inverse corresponds to the quoted currency.
So according to investopedia, the pound has appreciated.
But then i read another article that states:
if you have an exchange rate quoted as X/Y,
If X/Y goes up then Y appreciated..
If X/Y goes down then Y depreciated..
Then according to this article, the dollar has appreciated.
Can somebody tell me in simple terms how to understand what currency is appreciating/depreciating ? And can somebody please answer my first question?
EDIT: this is not a dupe. I am trying to understand how to read exchange rates and why two articles give opposing answers on the same topic.