Why is there a direct relation between foreign exchange rate and supply of foreign exchange?what is the meaning of external value of domestic currency and domestic value of foreign currency?
Dear Student
Please ask single query in a thread. However, a part of your query is answered here
1) Increase or Rise in foreign currency rate means an appreciation or upgrade in foreign currency in relation to domestic currency
2) Hence, when there is an increase in rate of foreign exchange rate it automatically leads to depreciation or decrease in domestic currency and rise in exports that may lead to rise in supply of foreign exchange
Please ask single query in a thread. However, a part of your query is answered here
1) Increase or Rise in foreign currency rate means an appreciation or upgrade in foreign currency in relation to domestic currency
2) Hence, when there is an increase in rate of foreign exchange rate it automatically leads to depreciation or decrease in domestic currency and rise in exports that may lead to rise in supply of foreign exchange