IRD

IRD, or Interest Rate Differential, is the difference in interest rates between two currencies or financial products. When you hold or exchange currencies with varying interest rates, the IRD reflects the potential gain or cost associated with that difference over time. It is often considered in currency trading or international investments, as it can influence the profit or expense linked to borrowing or lending in different currencies. Essentially, IRD helps investors understand how changes in interest rates across countries can impact the value of their currency holdings or investments.