Interest rates for beginners: why do they move currencies at all?

When a country raises rates, holding its currency pays more, which attracts money and tends to push the currency up — but only if the market didn't already expect it. The surprise is what moves prices.

Beginners: post your understanding of how this works in two or three sentences. Experienced members: correct and refine. This kind of plain-language explanation is how people actually learn.

The interest rate guide covers the mechanism in full.