There is a plethora of factors by which a currency gets influenced. The government is needed to concentrate on a few economic factors such as inflation, economic growth, interest rates, and current account balance. The rise of the value of a currency occurs due to the following things:
• Stimulated growth of the economy.
• Rate of inflation’s moderate bump (around 2% a year).
• The improvement of the trade balance. The trade balance is the total amount of income, goods, services, currency transference concerning other countries.
• The government of the country increasing the interest rates.
• Introduction of policies by the government that can influence supply-side economics.