The demand for euros in the US would probably rise and the number of available euros for sale would decline if US interest rates fell relative to German interest rates.
Higher interest rates frequently draw foreign investment, which raises both demand for and the value of the currency of the host nation. Conversely, lower interest rates typically make a currency less valuable relative to other currencies and are less appealing to foreign investment.
Rising interest rates often increase the cost of any debt while also increasing the income available to savers. With increased rates, the value of stocks, bonds, and real estate may also decline. You can take preventative measures to strengthen your overall finances while getting ready for tough economic times.
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