An Empirical Study on Interest Rate towards InternationalMarkets

Interest rate is one of the fiscal factor that is used to regulate the monetary policy of a country. The main objective of the study is to know about the interest rate prevailing with countries and to analyze about impact of interest rate towards international currency pairs. For this purpose the currencies of five countries were taken and they were compared with the interest rate to know about the impact. The conclusion that the interest rate changes has an impact towards the market in mid and long term basis with all the currencies taken for the study. Keywords: Interest rate, fiscal and monetary policy