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Exchange rate between two currencies does not depend on respective interest rates among them. True or False?

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Question added by Deleted user
Date Posted: 2014/09/01
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

True

Difference in Exchange Rate prevails on account of Purchasing Power Parity in relation to a commonly accepted currency Say for example compared to Value per US Dollar,  and not based on interest among them.

 

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