If the interest rate of a foreign country is less than that of the domestic country, then the foreign country will have a positive forward premium on its currency.

Name: If the interest rate of a foreign country is less than that of the domestic country, then the foreign country will have a positive forward premium on its currency.
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This is because a lower interest rate in the foreign country means that the currency is relatively more valuable in the future, resulting in a positive forward premium.

If the Interest Rate of a Foreign Country Is Less