All else being equal, an increase in domestic interest rates (for example, the central bank tightens monetary policy) would typically be expected to lead to an increase in the value of the domestic currency.
In contrast, the equation （f/d quoting convention） indicates that, all else equal, a higher domestic interest rate implies slower expected appreciation (or greater expected depreciation) of the domestic currency.
so increase in domestic interest rates will cause domestic currency to appreciate or depreciate ?! Helps TT作者: lawkm223 时间: 2013-11-11 15:07
domestic int rate increase=>foreign investors found the investment is attractive=>demand for domestic currency increase=>currency appreciate作者: apf_薛老师 时间: 2013-11-14 07:56
higher domestic interest rate will lead to appreciation of domestic currency
