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What is the relationship between fx rates and interest rates?

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5th Nov 2009 by Gary

The answer to the relationship between fx rates and interest rates is under normal conditions, if interest rates are low, so will the value of a currency be, and if interest rates are high, the general rule of thumb is currency from that country will be stronger as well. There are of course variables that can change that scenario, but overall it's the usual reality of the relationship between the two.

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This answer is the subjective opinion of the writer and not of FinancialAdvisory.com



5th Nov 2009 In Investing 1 Answers | 1717 Views
Subjects: fx rates, interest rates,

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What is the relationship between fx rates and interest rates?


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