How do Interest Rates Affect Currency Pairs
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In order to understand the reason behind the change in interest rates, let us first understand the factors that influence it. Interest rates directly impact the currency value, which is the base for the determination of exchange rates. A country's interest rates determine the strength of its currency. A lower interest rate tends to weaken currencies over time, and a higher interest rate tends to make currencies stronger.
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How do Interest Rates Affect Currency Pairs
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