No, interest rate parity implies that an investment in the U. S. with the same risk as a similar investment in a foreign country should have the same return. Interest rate parity is expressed as:

\[ \frac{\mathrm{f}_{\mathrm{t}}}{\mathrm{e}_{0}}=\frac{1+\mathrm{r}_{\mathrm{h}}}{1+\mathrm{r}_{\mathrm{f}}} \]

Interest rate parity shows why a particular currency might be at a forward premium or discount. A currency is at a forward premium whenever domestic interest rates are higher than foreign interest rates. Discounts prevail if domestic interest rates are lower than foreign interest rates. If these conditions do not hold, then arbitrage will soon force interest rates back to parity.