Quote:
Originally Posted by mosdave
Hi
I'm trying to learn about how fundamental economic factors affect currencies and today I was reading about interest rates. According to the literature I was reading a rise in interest rates stimulates foreign investment which leads to a demand for that currency and so drives up its value.
Today I saw that the Australian central bank increased its interest rate by 0.25% to 3.5% so I expected the AUD to rise somewhat against other currencies but it seems to have lost value which I don't understand.
If I look at the exact time the figures were released the charts show not much movement and then a downtrend.
What am I missing here?
Cheers
Dave
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Yeah I been thinking that same thing.
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