Effect of appreciation of exchange rate

Raises the price of exports when the euro appreciates - for example, exports from Europe sell for a higher price in America as it takes more dollars to buy each euro. People in America have to spend more dollars buying Euro to buy the same amount of exports from Europe. Import prices fall and demand for them might rise, - for example imports into Europe now cost less to buy from America as fewer Euro have to be given to buy the dollars needed for the same amount of imports.