Generally, higher interest rates increase the value of a country's currency. Higher interest rates tend to attract foreign investment, increasing the demand for and value of the home country's currency

Typically, higher interest rates reduce investment, because higher rates increase the cost of borrowing and require investment to have a higher rate of return to be profitable. ... (investment in this context does not relate to saving money in a bank.)

Increasing the domestic interest rate will cause the domestic currency to appreciate (because extra investment either flows into the country or stop flowing out of it).

I do not understand why higher interest rate appreciates currency, the reason is I think when there is a higher interest rate , cost of borrowing is increased and hence lower investment. Please explain my weary step by step.

Please explain the theory involved first, then step by step, detailed explanations ,with good presentations, answer and explanations to all parts please, please leave the question if you cant , as it would hurt your profile so dont take it if you are not confident. thank you!

PLEASE DO NOT JUST SIMPLY COPY SOMETING FROM INTERNET WITH NO EXPLNATIONS AND REFERENCES, EXPLAIN TO THE POINTS AND GET TO THE POINTS, THANKS