The International Fisher Effect is an economic theory that states that an expected change in the current exchange rate between any two currencies is approximately equivalent to the difference between the two countries' nominal interest rates for that time.

The International Fisher Effect is also known as the assumption of Uncovered Interest Parity.

Irving Fisher was the proposer of the International Fisher Effect theory.  The International Fisher Effect is an economic theory which states that an expected change in the exchange rate between any two currencies is equivalent to the difference between the two countries’ nominal interest for that time. The International Fisher Effect is a combination of two conditions – the Generalized Fisher Effect and Purchasing Power Parity.

International Fisher Effect means that an economic theory that states that an expected change in the current exchange rate between any two currencies is approximately equivalent to the difference between the two countries' nominal interest rates for that time.

International fisher effect is one of the five parity conditions that results from arbitrage activities. Arbitrage is the purchase of securities or commodities in the different markets for immediate purchasing and reselling in order to profit from a price discrepancy.