I would like to ask a silly question... I work with people who currency trade and I try to read the fundamental announcements and I keep getting mixed info on interest rates. Do interest rate increases strengthen or weaken a country's currency?
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Quoting jimsasyaDislikedI would like to ask a silly question... I work with people who currency trade and I try to read the fundamental announcements and I keep getting mixed info on interest rates. Do interest rate increases strengthen or weaken a country's currency?Ignored
Quoting NardinoDisliked....From Forex trading stand point, hiked interest rate add strength to that currency. The higher the interest rate the more people want to save with banks, the less loans and bond investments.
Significantly, this also affect the stock market trades because less people invest in it.
On the contrary, the opposite is true when interest rate is low.Ignored
DislikedI would like to ask a silly question... I work with people who currency trade and I try to read the fundamental announcements and I keep getting mixed info on interest rates. Do interest rate increases strengthen or weaken a country's currency?Ignored