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Rising rates don't make the dollar stronger. There's no empirical relationship between interest rates and exchange rates.
by nobbis 4y ago
Rising rates don't make the dollar stronger. There's no empirical relationship between interest rates and exchange rates.
- JumpCrisscross 4y ago> no empirical relationship between interest rates and exchange rates Wat [1][2][3][4]. [1] https://www.investopedia.com/ask/answers/040315/how-do-changes-national-interest-rates-affect-currencys-value-and-exchange-rate.asp https://www.investopedia.com/ask/answers/040315/how-do-chang... [2] https://www.kansascityfed.org/documents/443/1986-Interest%20Rates%20and%20Exchange%20Rates--What%20is%20the%20Relationship%3F.pdf https://www.kansascityfed.org/documents/443/1986-Interest%20... [3] https://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp548.pdf https://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp548.pdf [4] https://www.investopedia.com/carry-trade-definition-4682656 https://www.investopedia.com/carry-trade-definition-4682656
- zaroth 4y agoInterest rates are actually the predominant driver of demand for a currency!
- chimeracoder 4y ago> Rising rates don't make the dollar stronger. There's no empirical relationship between interest rates and exchange rates. I think this is the first time I've ever heard someone try to claim that printing money does not, ceteris paribus, impact the exchange rate.