Central Bank Influence on Currencies

by Anonymous
For countries with central banks one possible solution to curbing inflation is to raise interest rates. High interest rates could be considered a currency's return, which can prompt speculators to purchase units of that currency and increase demand and thereby increasing inflation.
Source: http://www.investorguide.com/igu-article-1151-forex-basics-economic-factors-influencing-currency-trading.html
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