Finance, Forex and Investments - What are the factors that cause the exchange rate to appreciate or depreciate?

What are the factors that cause the exchange rate to appreciate or depreciate?

What are the factors that cause the exchange rate to appreciate or depreciate? Under Economics.. :| Please help? Thank you.

Commodity prices are one reason. The loonie (Canadian dollar) was actually worth more than the USD a couple of years back due to high oil and nickel prices. When you have a very dysfunctional government and economy in general, the local currency is bound to drop like a stone. That's why 1 USD = 25 kajillion Zimbabwe dollars nowadays.