how does increase in foreign direct investment affect price of exchange rate

FDI is Foreign Direct Investment where foreign companies invest in domestic countries by opening up businesses or purchasing existing businesses. As they enter the country they want to convert their currency into domestic currency. So, there is a supply of foreign exchange and the supply curve shifts right pulling the exchange rate down. Domestic currency appreciates.

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supple of forex rises so suppy curve shifts righwards so price (i.e rate... ) falls

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