Quote Originally Posted by Adeboye     
What are the factors that influence currency appreciation?
The currency of a country can be influenced by several different things. Currency value on the market is driven primarily by the people participating. The people's reaction to these events are mostly responsible for the driving movements.

Influencial factors

Pegged currency
A pegged currency will fluctuate in value in the same way that it's associated currency or commodity will. A smaller country may peg their currency to one of the major currencies or even to gold. A floating currency behaves much differently and can be affected by several external factors.

Inflation
Inflation, long-term projections, and interest rates are all driving factors in the movement of currency value.

Statistics
Statistics like unemployment may also play a role. Local financial institutions adjusting interest rates can encourage participants to buy or sell in large quantities.These are just a few specifics that most often have an affect.