Abstract: With the deepening of financial globalization,the links between the monetary policies of some economies are getting closer and closer,therefore,the impact of interest rate adjustment on the forward curve becomes intricate and complex. In this paper,we study the existence and uniqueness of fixed points on the forward curve when two economies adjust their target interest rates. At first,we propose the condition for existence and uniqueness of fixed points on the forward curve,when the term structure of interest rate occurs various changes caused by interest rate adjustment. Then,based on the macroeconomic situations and monetary policy implemented by U.S. and Canada,we select five typical cases to verify the theory,which are common in the real monetary policy. The empirical results show that there exist some fixed points on the forward curve when the term structure of interest rates and spot exchange rate meet certain conditions.

Key words: interest rate adjustment, term structure of interest rates, term structure of forward exchange rates, fixed points