Question

impact of foreign investments in India on exchange rate?

Answer 1

hey Buddy here is ur ans
Foreign investment brings in foreign exchange. It means, supply of foreign exchange will increase in India. When supply increases, with demand curve being static, Indian currency appreciates and foreign exhange rate falls.

Answer 2

here is your ans

Foreign investment brings in foreign exchange. It means, supply of foreign exchange will increase in India. When supply increases, with demand curve being static, Indian currency appreciates and foreign exhange rate falls.