When interest rates rise, the rate gap with the US will narrow and that will provide pressure for the yuan to strengthen.

When interest rates rise, the rate gap with the U.S. will narrow and that will provide pressure for the yuan to strengthen. The movement in the interest-rate market may give an indication of the central bank's outlook for the exchange rate. To the Chinese government, yuan appreciation has become acceptable.

Interest rates have an indirect effect on exchange rates.

They have to approach us about it, if they will use as a corporation, individual or bank,

Inflation is still higher than nominal interest rates, and this is a clear sign that monetary conditions are highly accommodative in Malaysia and the need for interest rates to return to a neutral level.

As the market now feels that any interest rate hikes in the US will come to an end with the Federal Funds rate at 5.0 percent, the dollar is likely to remain exposed to downside risk.