Hi, just stuck on this question.

This refers to a currency wedged between the forces of upward pressure from commodity exports, and downward pressure from the government's quantitative easing program. It is stated that the central bank has said they would not raise their interest rate above 0.1% for the next few years, therefore it has exhausted the conventional interest rate response to currency pressure.

Q. In this case, would the conventional interest rate response to currency pressure be to increase interest rates ultimately appreciating the currency, or decrease them, ultimately depreciating the currency?

Thanks so much! I'm confused as to what the conventional response is trying to achieve.