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How does inflation affect the exchange rate 2024?

Alexander Lee | 2023-05-07 11:14:54 | page views：1396
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Harper Patel

Studied at the University of Amsterdam, Lives in Amsterdam, Netherlands.
Therefore, higher interest rates attract foreign capital and cause the exchange rate to rise. The impact of higher interest rates is mitigated, however, if inflation in the country is much higher than in others, or if additional factors serve to drive the currency down.
2023-05-08 11:14:54
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Noah Baker

QuesHub.com delivers expert answers and knowledge to you.
Therefore, higher interest rates attract foreign capital and cause the exchange rate to rise. The impact of higher interest rates is mitigated, however, if inflation in the country is much higher than in others, or if additional factors serve to drive the currency down.
6 Factors That Influence Exchange Rates - Investopedia
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