Eli5: The correlation between fed interest rate and euro / usd exchange rate.

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In the historical data there have been periods with even higher interest rates then today and the euro – usd parity was not impacted.

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Anonymous 0 Comments

The Euro has gone down a little, not a lot. It’s the USD that’s going up. The war, Covid, the coming recession etc., are making people move to the USD to protect their money / some are following the trend speculating to make money. The interest rate isn’t closely aligned with the currency changes.

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