Forex glossary

Interest rate in Forex

A clear definition of Interest rate, with practical context for reading markets and making better trading decisions.

Level 7 · Connect News to MarketsFundamental analysis

Definition

The price of borrowing money, set or influenced by central banks. Differences in expected interest rates are a major driver of currency demand.

If markets expect US rates to rise relative to euro-area rates, USD demand may increase.

Understanding Interest rate helps traders interpret market information, plan decisions, and manage risk with more context.

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