Uncovered interest rate parity

[archived_user]

For UIP, the expected change in future spot rate = interest country A - country B, therefore, if interest rate country A is greater than B, we would expect to see currency A depreciate against B.
However, I believe that if interest rate in country A is greater than B, we should expect capital inflow to A and outflow from B leading to appreciation of currency A.
Why does UIP yield different outcome to capital flow perspective?

 

[archived_user]

Because interest rate parity isn’t intended to predict future interest rates, and it has no influence on them.
Interest rate parity is intended to prevent arbitrage opportunities.