Answer: In the foreign exchange market, the increase in the U.S. interest rate increases the demand for dollars and the demand curve for dollars shifts rightward. The increase in the interest rate also decreases the supply of dollars and the supply curve of dollars shifts leftward. As a result, the exchange rate rises so that the dollar appreciates.
Very informative article about every element on Foreign Exchange Market .If you are interested in making money with Forex, you can contact the services of Nord Fx, a reputed online broker for reliable trading service. Visit www.nordfx.com for more information.
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Very informative article about every element on Foreign Exchange Market .If you are interested in making money with Forex, you can contact the services of Nord Fx, a reputed online broker for reliable trading service. Visit www.nordfx.com for more information.
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