Hi, this question relates to interest rate parity vs expected appreciation/depreciation of a ccy.
Firstly, interest rate parity implies that the country with the higher interest rates will experience a ccy depreciation over time against a country with lower interest rates.
However, at the same time, an interest rate increase causes a ccy to appreciate, as investors will buy the high-rate ccy and sell the low-rate ccy to earn a higher rate of interest. (ie, look what happens when the Australian Reserve Bank raises interest rates, the AUD goes up).
How do you reconcile these two contradictory ideas?