What are the double effect of interest rates on the Forex market?

[Aya]

On the other hand, low-interest currencies are more attractive to traders at times when volatility in global markets is high due to various financial and economic problems.

Perhaps this is to steer away from high risks.

[AbdulShiek]

Correct. Higher interest rates equals to less profit.

[AshieLemon15]

Interest rates are crucial to day traders in the forex market because the higher the rate of return, the more interest is accrued on currency invested, and the higher the profit. ... While you may always want to buy currencies with higher interest (funding them with those of lower interest), such a move is not always wise

[Mr. Cid]

On the other hand, low-interest currencies are more attractive to traders at times when volatility in global markets is high due to various financial and economic problems.

The problem is the interest rate keeps getting higher due to some factors that cause the pandemic crisis.

[Alexthedefender04]

On the other hand, low-interest currencies are more attractive to traders at times when volatility in global markets is high due to various financial and economic problems.

[Newbie_trader]

The interest rates might put investors in jeopardy if it cannot be controlled.

Correct. The sudden increase of the interest rate might cause panic to some individual.

[PALM]

high-interest rates support the associated currency. High-interest rates attract investors because they offer higher returns. Forex traders prefer to buy high-yielding currencies against the sale of low-yielding currencies to take advantage of the difference in interest rates (this strategy is called curry trade).

[AbdulShiek]

The interest rate applies to all trading instruments. We can get the interest rate automatically.

The interest rates might put investors in jeopardy if it cannot be controlled.

[Mr. Cid]

Interest rates, set by central banks worldwide, are heavily used in forex trading. Forex traders and investors are closely monitoring changes in interest rates, which in turn determine the underlying value of traded currencies. Any forex trader needs to understand the impact of interest rates on different currencies. You can easily see the interest rate table to see the rates applied in each country, but the biggest challenge remains how to interpret them?

The interest rate applies to all trading instruments. We can get the interest rate automatically.

[Mr. Cid]

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Don't mind the spelling as long as they can express themselves.