(1) interest rate rise-arbitrage capital inflow-interest rate rise, money demand increase-currency value rise-exchange rate decline under direct quotation.
(2) Rising interest rates-rising production costs of enterprises (falling profits)-declining production enthusiasm-weakening economic growth-weakening international competitiveness-declining exports-declining demand for money-declining currency value-rising exchange rate under direct quotation.
(3) Interest rate rises-production costs of enterprises rise (profits fall)-production enthusiasm falls-economic growth falls-people's income and consumption fall-imports fall-foreign currency demand falls-currency value rises-exchange rate falls under direct quotation.
2. Interest rate or interest rate is the price that the borrower needs to pay for the money borrowed, and it is also the return that the lender gets by delaying his own consumption and lending it to the borrower.