How do interest rate decisions move a currency?

In simple terms, higher interest rates tend to attract investors looking for better returns, which supports the currency. Lower rates often have the opposite effect.

But markets move on expectations. If everybody expects a rate rise and it happens, the currency may not move much, or may even fall (buy the rumour, sell the fact). What often matters more is the central bank's tone and its guidance about future rates.

Compare the decision with what the market expected, and read the statement and the press conference.