When investors expect higher returns from Japanese stocks, the demand for _____ increases as they need this currency to invest, leading to an appreciation of its value.

When investors want to buy Japanese stocks, they need Japanese yen, which is the currency of Japan. This increased demand for yen happens because they must exchange their own currency for yen to make their investments. As more people want to buy yen, its value goes up compared to other currencies, which is called appreciation. For example, if a U. S.