Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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Appreciation

Appreciation, in general terms, is an increase in the value of an asset over time. The increase can occur for a number of reasons, including increased demand or weakening supply, or as a result of changes in inflation or interest rates.

A currency is said to ‘appreciate’ when it strengthens in value in response to market demand.

One currency that appreciated during the middle of the 1990s was the yen. In 1995, it mounted to 80 yen per dollar.

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