Answer to Question #40776 in Macroeconomics for Sam
Interest rate levels are a factor of the supply and demand of credit: an increase in the demand for credit will raise interest rates, while a decrease in the demand for credit will decrease them. Conversely, an increase in the supply of credit will reduce interest rates while a decrease in the supply of credit will increase them.
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The answer on your question is YES.
Here is the explanation:
As the increase of interest rate causes the increase of the amount of investments flowing to the country, so the currency (U.S dollar) will worth more. As a result, the purchasing power will rise, so less amount of money for a good (foreign currency) will be required. Thus, a rise in the US interest rate causes a movement along the US demand curve for a foreign currency.
This answer is at best highly irrelevant.