Overnight interest rates

Here’s a newbie question… :slight_smile: if interest rates raise then I assume that the value of the currencey raises too, so does the currencey become stronger?.. thanks all, happy pips :slight_smile:

I would say yes, you are correct. You would get more interest on your money when you buy that currency so if an announcement was made to say that the interest rate was increasing then people would buy that currency causing an up-trend.
There will be other factors to consider as well but on the whole, this would be the standard expectations with a news release of this type.

Thanks for the reply baz, make sense :slight_smile: