Interest rate .....?
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  1. #1

    Interest rate .....?

    In my personal opinion i think when the interest rate is go done then currency is goes down and rate of inflation is increased so same when the interest rate is increased then the inflation is goes down and i think the rate of interest is increase to meet the inflation or overcome it.

  2. #2
    Forex rate are always on move, when traders are new sometime the move seem mysterious and random, there are many thing that effect the movement of exchange rate between countries. on things that is always on underlying factor that constant is the interest rate on a currency. In general its consider good practice any where to gain interest on your money.

  3. #3
    Trader Russel2012's Avatar
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    Interest rate is the one another great fundamental news.. Interest rate can move the market very quickly.. Even interest rate can impact highly in market movement... So every trader should calculate the interest rate for future market price... It's very important news for every trader...

  4. #4
    The interest rate is not only influenced by inflation alone, but there are several other conditions that could affect the rate of interest, such as the level of property investment, loan or mortgage lending, export-import, deposits and other.

  5. #5
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    When interest rate goes down the currency strengthens because the cost of borrowing is low, that means investors would want to borrow more of these currency hence the cost of borrowing has been reduced although I've seen instance whereby a currency interest rate is reduced but the market sells,although when it comes to interest rate one the and currency market one can't say for sure how the market would react hence investors apitiet can't be predicted, and guessing this is due to the factors that lead to the change in interest rates rather than the change of interest rates itself.

  6. #6
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    Trying to learn from this thread about interest rate. I have no any vast idea about it and I do not think about the interest rate also. I am a simple trader with simple ambition. I want to earn reasonable profit from this trade managing the forex rules and regulation.

  7. #7
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    Sir for now I don't have much information about this topic but I think these type of terms affect a currency pair for sure that's right that if a currency interest rate will be down then for sure it will affect that currency pair we should surely know about fundamental analysis

  8. #8
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    I must say that I understand what you are saying quite fine, but it is not easy to go by that all the time. The lower interest rate can either put the currency lower or higher, it depends on the nature of the economy of that country and the present unemployment rate. All these work together, so traders should be careful to ascertain a movement on interest rates.

  9. #9
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    Interest rates and inflation are linked up to to each other. We must calculate the interest gained or owed when buying or selling a specific number of units of a currency pair. when interest rate decreases then the traders avoid to invest that is why the inflation decreases when interest rate is increased. Higher interest rate captivates the attention of the trader and so it increases the demand of the currency.

  10. #10
    I think it is not easy to try to understand the whole meaning of all the concepts of the economic items related to the different currencies because there are so many differences between the right understanding of a certain concept through the different countries . so I think that they may be translated in their influence into different outcomes

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