How does currency appreciation typically affect a country's trade balance and monetary policy?

When a country's currency appreciates, it means that its money is worth more compared to other currencies. This can make exports more expensive for foreign buyers, which might lead to a decrease in sales of those goods abroad. On the other hand, imports become cheaper, encouraging people in the country to buy more foreign products. As a result, the trade balance, which measures the difference between exports and imports, may worsen because the country could buy more than it sells. For example, if the U.