When foriegn investors demand dollars in order to invest does it cause the dollar to appreciate or depreciate?

Question

If you could please help and explain why it would be greatly appreciated. Colin

Answer 1

you answered the question yourself.
when the demand goes up, the price goes up, which in this case means that people want dolars, and will pay more, which brings appreciation.
when foreign investors want to invest in the Usa, what they do is changing their local currency, lets say Euro to Dolars(they have to pay all their costs in dolars once they are in the Usa), selling their Euros, and Buying dolars brings appreciation.

Answer 2

Demand always causes the price or value of something, including dollars, to rise or appreciate