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How lower currency effect indirectaly in lowering intrest rate?
Can you explain how lower currency can indirectly lower interest rates?
Sure, lower currency can indirectly lower interest rates because when a country's currency is weaker, investors may be less likely to invest in that country. This can lead to a decrease in demand for that country's assets and therefore a decrease in the value of that country's currency. In turn, this can cause inflation and make it more expensive for the country to borrow money. To combat this, central banks may lower interest rates to make borrowing cheaper and stimulate economic activity.