Interest rates that can affect exchange rates are closely linked to inflation. Countries aim to balance interest rates and inflation, but it is a dynamic, often complicated, relationship between the two. Low-interest rates increase consumption and economic growth for consumers and affect currency value generally positively. Inflations, which are not inevitably bad outcomes, will occur if the consumption rises to the point where demand exceeds supply. But low rates do not typically draw investment from abroad. Higher interest rates appear to draw foreign investment, and the demand for a country's currency would likely increase