Suppose the Federal Reserve Bank of the US unexpectedly raises interest rates in the US. How do you think this will impact the foreign-exchange market?
The foreign exchange markets would have to approach buying the dollar and any currency that rates itself against the dollar with a more cautious eye. The price of the dollar would most likely rise as long as inflation was kept in check, but the ...
A discussion on the affects of changes in the interest rates in the U.S. on the foreign exchange markets.