Currency depreciation is the decrease in the value of one currency relative to another. For example, if the EUR-USD exchange rate moves from 1.15 to 1.00, it means that the euro has depreciated by 13% against the U.S. dollar. Holding everything else constant, home currency depreciation can boost the profits of exporters as their sales are more valuable when converted in the home currency. Faced with an depreciating currency, exporters in such situations might afford to slash their prices abroad as their profit margins increase. Currency depreciation also means that local firms will face less competitive pressure in their home markets from foreign companies selling. Sustained currency depreciation, however, is likely to result in rising inflation expectations and interest rates, as shown by many Emerging Markets currencies.