Interest Rate

The amount charged by a lender for borrowing money.

Detailed Definition

The interest rate is the amount a lender charges for the use of assets expressed as a percentage of the principal. In Forex, central bank interest rates are the primary driver of currency valuation.

Related in Forex

Hawkish

An economic outlook favoring higher interest rates.

Fixed Exchange Rate

A currency's value matched to another currency or asset.

Forex (FX)

The global market for trading currencies.