Correct me if I am wrong, if a country's currency appreciates, foreign goods are relatively cheaper than domestic goods, so imports increases and export decreases.

And if depreciates, the opposite is true?

Sounds right to me.

You are correct! When a country's currency appreciates, it means that its value increases relative to other currencies. As a result, foreign goods become relatively cheaper when compared to domestic goods. This price advantage makes imports more attractive, as foreign products can be obtained at lower prices. At the same time, the cost of domestic goods increases for foreign buyers, leading to a decrease in demand for exports. Therefore, an appreciation of a country's currency tends to increase imports and reduce exports.

Conversely, when a country's currency depreciates, its value decreases compared to other currencies. This depreciation makes foreign goods relatively more expensive when compared to domestic goods. Consequently, the cost of importing foreign products increases, leading to a decline in imports. On the other hand, the decrease in the price of domestic goods makes them more attractive to foreign buyers, resulting in an increase in demand for exports. Therefore, a depreciation of a country's currency tends to reduce imports and increase exports.

It's important to note that exchange rates are influenced by various factors such as interest rates, inflation rates, economic growth, and market demand. Governments and central banks also play a role in managing their respective currency values through monetary policies and interventions in foreign exchange markets.