Interest Rates Impact - Ảnh Hưởng Lãi Suất

Interest Rates & Forex

Higher interest rates → Stronger currency (ceteris paribus).

Mechanism

• High rates → Foreign investment ↑
• Demand for currency ↑
• Currency appreciates

Central Banks

• Fed (USD)
• ECB (EUR)
• BOE (GBP)
• BOJ (JPY)