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Why does the forward exchange rate of currencies with high interest rates really fall?
The reason why the forward exchange rate of currencies with high interest rates will fall is that the arbitrage activities in the foreign exchange market will generally eliminate the income differences of various investments and make all monetary returns tend to be the same. Therefore, the currency with higher interest rate at present will depreciate in the future, thus reducing the income of the currency; Currencies with low interest rates at present may appreciate in the future to make up for the lack of interest rates.

Tips: The above explanations are for reference only.

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