We can look at this situation in a different way. When someone goes to US, they normally convert rupees to dollars in banks. In one way, we are buying dollars with rupees. So last year, we spend 60 rupees to buy 1 dollar. This year we are spending 65 rupees to buy 1 dollar. So the local currency i.e rupees has depreciated in value compared to dollars(the worth of dollar has increased compared to rupees). In case, we spend 55 rupees to buy 1 dollar, compared to last year 60 rupees, the local currency i.e rupees has appreciated in value compared to dollars.And if it remains same, we can say its stablized. Another simple way to remember this: if you spend more from your pocket to buy a dollar (the amount of money that you have in your pocket has come down(depreciate)) Hope this clarifies the doubts.