Investors want to have confidence in a nation’s economy, political infrastructure, and government policies. Currencies are more appealing when fixed-income securities offer higher yields in that currency. For this reason, investors prefer currencies tied to nations with higher interest rates as opposed to loosened monetary policies that devalue the currency through an inflated money supply. Investors also prefer currencies tied to strong economies that are relied upon for global trade that are experiencing growth. This includes nations whose debt is not outpacing annual economic growth, unemployment is stable, and the balance of trade with other nations is favorable.