currency appreciation

Currency appreciation occurs when a country's currency increases in value compared to other currencies. This means you can buy more of foreign currencies with your own, making imported goods cheaper and exports potentially less competitive abroad. Appreciation can happen due to beneficial economic factors, higher interest rates attracting foreign investment, or positive investor sentiment. It impacts international trade, affecting prices of goods, travel costs, and investments. Essentially, when a currency appreciates, it reflects increased confidence or strength in the country's economy relative to others.