Does a rise in interest rates really cause a currency to strengthen?
Whenever a central bank of any country raises interest rates, a common follow-up question is whether that country’s currency will “strengthen.” Theoretically, the answer is yes—but in
practice, it’s more complicated. We can’t say with 100% certainty that an interest rate hike will always result in a stronger currency.
The New Normal Era of Elevated Interest Rates
Over the past 2–3 years, the world has witnessed significant economic changes — starting from the outbreak of COVID-19, economic stimulus through monetary policy, to skyrocketing inflation. In the past, when the economy slowed down or inflation decreased, central banks would usually “cut interest rates” to stimulate consumption and investment. But by 2025, the world […]
A Look at Budget Travelers’ Habits: How They Plan Trips Amid High Interest Rates
These days, going on a trip isn’t just about picking a destination — budgeting has become just as important. With global interest rates still high and the cost of goods and services rising, budget-conscious travelers are adjusting their behaviors to travel comfortably without breaking the bank.
