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relation between interest rates and currency for a nation
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what you are asking about is called interest rate parity. or for a longer explanation the article interest rate parity at wikipedia.  if the us has a rate of say zero, and the rate in elbonia is 10%, one believes that in a year the exchange rate will be shifted by 10%, i.e. it will take 1.1 unit of their currency to get the dollars one unit did prior.  else, you'd always profit from such forex trades.  (disclaimer - i am not claiming this to be true or false, just offering one theory that explains the rate difference effect on future exchange rates.
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