Question on Forward/Spot Rate and Interest Equilibrium expressed, domestic, currency, positive

SkipE99

I encountered this equation while reading the Schweser's Notes on Forward/Spot Rate

Domestic Interest Rate - Foreign Interest Rate = (FWD Exchange Rate - Spot Exchange Rate) / Spot Exchange Rate

Exchange Rates are expressed as DC/FC

Let's assume D-interest is > F-interest, that would make the left side positive. This means FWD > Spot Rate for the right side to also be positive. Since exchange rate is expressed as DC/FC, this means the domestic currency must have depreciated against the foreign currency.
FWD = $1.2 / peso Spot = $1 / peso

Now let's go back to the left side. If D-interest > F-interest, this means domestic currency will rise since the real interest is higher for domestic country. Which means domestic currency will appreciate..


Why do these two contradict each other?

Regards