Consider the market for Canadian dollars.If the exchange rate rises from 2 Mexican pesos per dollar to 4 Mexican pesos per dollar,

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An increase in the exchange rate from 2 Mexican pesos per dollar to 4 Mexican pesos per dollar makes Canadian dollars more expensive in terms of Mexican pesos. This is represented as a movement up along the demand curve for Canadian dollars, as it reflects a change in the quantity demanded due to the change in price (exchange rate), not a shift in the demand curve itself.

Consider the Market for Canadian Dollars