What effect does interest rates and currency exchange rates have on a country's economy?

I need to know this for a group project. We're meant to be analysing a country's macroeconomic performance and I've been tasked to write about the country's interest rates and currency exchange rates. I've searched about for hours but all I seem to find is news and statistics (they decided to keep interest rates at 1%, the value of the currency has risen etc. etc.) and I don't know what they mean and how they could be applied to the economy in the big picture. Could someone please help me understand?|||higher interest rates discourage investments in capital because the cost of not putting your money in the bank is higher. as a result of the decreased capital investment the economy slows down. the opposite holds true for lower interest rates.





exchange rates have to do with trade a more valuable dollar makes foreign goods cheaper increasing imports and a less valuable dollar makes foreign goods more expensive but makes domestic goods cheaper for foreigners, this increases exports.





this is interest rates and currency exchange rates in a very basic overview.