When the interest rate is positive it often means the value of money is more positive.
So rather than looking at a positive interest rate, it is more important to look at the positive nature of the economy. When people have confidence in the economy, even when there is inflation, the dollar or currency tends to rise due to positive futures.
When the economy is in jeopardy it can mean trouble for the currency. On the other hand, in order to bolster the economy, those who are in power and have money may try to promote the currency to increase in value by investing - thus helping to stabilize the economy. Other countries want a weak dollar as it means their currency will be of more value; hence the push and pull system.
- Inflation can be an effect of a rising interest rate into the higher positive area
- It is thought that when the interest rate is positive then the value of money will also improve
So rather than looking at a positive interest rate, it is more important to look at the positive nature of the economy. When people have confidence in the economy, even when there is inflation, the dollar or currency tends to rise due to positive futures.
When the economy is in jeopardy it can mean trouble for the currency. On the other hand, in order to bolster the economy, those who are in power and have money may try to promote the currency to increase in value by investing - thus helping to stabilize the economy. Other countries want a weak dollar as it means their currency will be of more value; hence the push and pull system.