An Increase in the Demand for U.S. DollarsAn increase in the demand for U.S. dollars might result from a change in the preferences of European investors. The demand curve for U.S. dollars shifts from D1 to D2. So the equilibrium number of euros per U.S. dollar rises—the dollar appreciates. As a result, the balance of payments on the current account falls as the balance of payments on the financial account rises.