An interest rate also refers to the interest amount due as a part of the borrowed, deposited, and lent amount in a time period. In general, higher interest rates would increase a country’s currency value. On the other hand, lower interest rates are not good for foreign investment since it’ll decrease the relative value of a currency. The mortgage industry represents one of the sectors that is sensitive to interest rate changes. Most affected are adjustable rate mortgages, also called ARMs. Borrowers of this type of mortgage can enjoy lower notes if interest rates decrease. However, if interest rates go up, so will their mortgage payments. Many things affect the movement of exchange rates between countries. One thing that is always an underlying factor that is constant is the interest rate of a currency. In general, it's considered good practice anywhere to gain interest on your money. People all over-invest in money market funds, and bonds,