What is the relationship between interest rates and exchange rates 2024?
I'll answer
Earn 20 gold coins for an accepted answer.20
Earn 20 gold coins for an accepted answer.
40more
40more
Works at the International Finance Corporation, Lives in Washington, D.C., USA.
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.
2023-05-11 11:15:17
评论(499)
Helpful(122)
Helpful
Helpful(2)

Felix Davis
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.