Interest rate and its impact on the currency

Interest rate and its impact on the currency: -

There is a belief among many that a rate hike Brotherhood on the currency leads to increase their strength and it is the view is not without merit and also strange, since the word raise interest rates means that the weak currency will make you get the most benefit from it up to now if the currency strong currency no need originally Riqaha.

To illustrate imagine if one tells you that there is bride beautiful courted and distal and proximal and have the money and science and ethics and dowry thousands of dollars as well as its network and inhabit Palace and though I father does not mind to marry her you without cost one penny even pay you also marry Is this speech consistent with reason or logic? Of course not to be that unusual bug Whatever was Altha it remains excellent bride, of course, but the former is impossible ideals happening in the first place.

Abu bride is the central bank owner currency and the bride is the currency and the groom is you buy currency reason only to give her father the Central it must be Jal and Hevh and نسره and Taatriqa He is willing to pay you to marry her, what pay is the price that get rid of those Albloh and ready higher Asrakhk them to pay you more does he pays no matter how much will make it beautiful? Of course not important to pay will never the same monkeys only difference you Stgd consideration because of the benefits that may be obtained and the larger the age increased father Central Payment as if to say monkey Walkman man and will remain there really does not change never, never as a monkey and an old after whatever they pay you, how can this money paid make them moon 14 Believe me, even the "Oprah Winfrey" estimates changed to "Catherine Zeta-Jones" all Mlaineha.

The question is authorized to what piety currency when increased interest?

The fact that markets move based on expectations for higher interest and not at the rate hike actually, when lifted interest falls bonds directly (Sindh long-term debt in return for interest periodically pay) has inflicted shares also, and this leads to a large movement of funds out from the first currency to the currency-interest Top as the people and companies that rely on interest income consistent with transfer funds to the currency Top benefit leading to rapid movement in the market may continue to the period before lifting or even after lifting and then begin currency relegation and for the simple reason it does not make sense to pay you Ashan marry sweet rich in the first example, but pay you to marry Djil in the second example it conceivable that the currency will step up and pay you well rise??

That the interest rate is bribery paid by the government to let them keep their own currency lousy Had a good, strong Kalin Japanese, for example, reduced the interest rate to zero "Valhaloh pay her Djil take them" even noticed well find that the dollar after raising interest fell in front of each currency from 1.16 euros to approximately 1.30, and the euro after the rate hike fell from 1.30 to 1.25 Had raise interest rates strengthens the currency why the dollar fell 1400 points and the euro fell 500 points so far?

Conclusion or butter that the state raise interest rates to fight inflation, which means falling value of the currency and whenever raised interest currency fell more ear is lifted with a view to alleviate the selling pressure or fall of its currency and certainly not to raise the value and so by paying a bribe to the holder and the more inflation any weakness raised more interest to you can fight inflation and begin to cut interest rates, which is not going to happen until we get to 11% at least on the dollar, leading to a contraction of a large economy and rising huge unemployment, and is only possible in a dream to think that raising interest will lead to lifting the dollar or any currency raises them interest and remember that bribery is the interest rate will not cover even 25% of the losses do not believe that Wolf jogs messes