Assume that Swiss investors have francs available to invest in securities, and they initially view U.S. and British interest rates as equally attractive. Now assume that U.S. interest rates increase while British interest rates stay the same. This would likely cause:

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If U.S. interest rates increase while British interest rates stay the same, this will make U.S. securities more attractive to Swiss investors. To invest in these securities, Swiss investors will need to buy dollars, causing an increase in demand for the dollar. This increased demand will cause the dollar to appreciate against the Swiss franc.

Assume That Swiss Investors Have Francs Available to Invest in Securities