Foreign currency depreciation area

Hi All,

I have a requirement to create a foreign currency depreciation area ( in the same currency as group currency USD) with identical terms from area 01, which is in local currency.

While doing currency translation during the acquisition, system is picking up the correct translation rate for converting local to parallel currency depreciation area whereas for foreign currency the exchange rate is different. I understand that for parallel currency depreciation area system will consider the group currency definition in FI-GL.

Could anyone throw some light how system considers/ picks up exchange rate for local to foreign currency area?

Thanks for your help,

Vamsi