oussama94
05-28-2017, 02:27
Traditionally, if a country’s interest rates rise, its currency will normally strengthen
because investors will shift their assets to that country to gain higher returns. Conversely,
if a country’s interest rates fall, its currency will normally weaken as investors shift
money away looking for higher returns.
Consequently, if the interest rate differential of one currency versus another increases
or decreases dramatically, the exchange rate and thus Forex prices may also dramatically
change.
because investors will shift their assets to that country to gain higher returns. Conversely,
if a country’s interest rates fall, its currency will normally weaken as investors shift
money away looking for higher returns.
Consequently, if the interest rate differential of one currency versus another increases
or decreases dramatically, the exchange rate and thus Forex prices may also dramatically
change.