A speculative rise in the value of the currency will drive up the value of the currency because of the increased demand. If the central bank buys the domestic currency this will further increase the demand and further drive up the price of the currency.
A speculative rise in the value of the currency will drive up the value of the currency because of the increased demand. Increasing interest rates will cause the demand for domestic currency to rise even more as more funds enter the domestic economy to take advantage of the higher interest rates.
The sale of foreign currency in a foreign exchange market by the central bank will not impact the value of the domestic currency.
A speculative rise in the value of the currency will drive up the value of the currency because of the increased demand. The sale of domestic currency lowers the value of that currency, which offsets the speculative rise in the value of domestic currency.
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