/biz/ - Business & Finance

>>53762342
you're still not getting it. look at pic related - also from the IMF
it's about foreign investors increasing their demand for the foreign currency
I am not disagreeing with you that higher interest rates result in lower demand from consumers
What matters is that foreign investors increase their demand for dollars (relative to their currency) as interest rates go up, they decrease their demand (and supply) of their native currencies in order to buy dollars