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Watch: The effect of central bank interest rates on foreign exchange rates.

Coinciding with their meeting at Jackson Hole, Wyoming, this weekend.
August 23, 2019

Conventional wisdom claims that the difference between the interest rates levied between two countries will impact the value at which currencies can be exchanged. This in turn affects the cost of goods and services in both, influencing consumer behaviour. That's the theory, now let's look at the charts to see whether it holds true.