There are close relationship between exchange rate, inflation and GDP. If that country's exchange rate is increasing, that means the growth of that country is very fast. However, if the growth is too fast, then the inflation problem will arise. And then, the "國家銀行 or 央行" will increase the interest rate to control the over heat. China and USA are good example in this case. At normal, the govement will not control the market because too much control is not healthy for the growth in long run.
參考: FX is a great topic, hope this short massage can give you a rough idea.