How does an increase in demand for a country's goods and services typically affect its currency value?

When demand for a country's goods and services increases, more people, both inside and outside the country, want to buy those products. This higher demand usually leads to more people needing the country’s currency to make these purchases, which can increase the value of that currency. For example, if a lot of people around the world want to buy Japanese cars, they will need to exchange their money for Japanese yen. As more yen are needed for these transactions, the value of the yen goes up. Therefore, increased demand for a country's exports generally leads to an appreciation of its currency.