Appreciation of a currency

Trade Surplus: A trade surplus occurs when a country exports more goods and services than it imports, leading to an increase in demand for that country's currency.

Higher Interest Rates: When a country's central bank raises interest rates, it attracts foreign investors looking for higher returns on their investments. This increased demand for the country's currency can contribute to its appreciation.

Strong Economic Performance: If a country experiences strong economic growth and stability, it can attract foreign investment and increase confidence in its currency, resulting in appreciation.