How Interest Rates Affect Currency Markets

Learn the basic relationship between interest-rate expectations and currency rates.

Key idea

Learn the basic relationship between interest-rate expectations and currency rates. Financial websites can use different data sources, timestamps and quote conventions, so check what each number represents before comparing it with a bank, broker or payment provider.

What to compare

• or market rate
• Timestamp and market session
• Bid/ask spread where relevant
• Provider fees and conversion margins
• Historical period and data source

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Important note

Market and data are informational. They are not a guarantee of a future price and are not financial, tax or investment advice.