According to the International Fisher Effect (IFE), if Australian interest rates exceed British interest rates: the Australian inflation rate will decrease. the Australian dollar value will remain constant. the Australian dollar will depreciate against the British pound. today's forward rate of the Australian dollar will equal today's spot rate. the forward exchange rate to convert pounds to the Australian dollar will contain a premium. In general, when speculating on exchange rate movements, the speculator will the currency that is expected to depreciate and the country whose currency is expected to appreciate. borrow; borrow from invest in; invest in invest in; ignore invest in; borrow from borrow; invest in