The expectation that Australia's interest rates will remain relatively high may contribute to the strength of the AUD.

Question

Quizplus · Accepted Answer

When a country's interest rates are high, it can attract foreign investors seeking higher returns on their investments, which increases demand for that country's currency, leading to a stronger exchange rate. Therefore, if Australia's interest rates remain high, it could contribute to the strength of the AUD.

The Expectation That Australia's Interest Rates Will Remain Relatively High