Points on the IFE Line
All the points along the IFE line reflect exchange rate adjustments to offset the differential in interest rates. This means investors will end up achieving the same yield (adjusted for exchange rate fluctuations) whether they invest at home or in a foreign country.
Points below the IFE Line
Points below the IFE line generally reflect the higher returns from investing in foreign deposits.
Points above the IFE Line
Points above the IFE line generally reflect returns from foreign deposits that are lower than the returns possible domestically.