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What is the relationship between FX rates and interest rates?

The answer to the relationship between fx rates and interest rates is under normal conditions, if interest rates are low, so will the value of a currency be, and if interest rates are high, the general rule of thumb is currency from that country will be stronger as well.

What is FX exchange rate?

Exchange Rate (also known as forex rate, FX rate, foreign-exchange rate, or Agio) is a relative value between two currencies at which one currency can be exchanged for another currency. It is also thought as the price of one currency in terms of another currency.

What is meant by the term 'fixed exchange rate'?

A fixed exchange rate is a regime applied by a government or central bank that ties the country's official currency exchange rate to another country's currency or the price of gold . The purpose of a fixed exchange rate system is to keep a currency's value within a narrow band.

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