Visits to foreign countries for sightseeing, etc by the people of India i$ on the rise

cbse-class-12

#1

Visits to foreign countries for sightseeing, etc by the people of India i$ on the rise. What will be its likely impact on foreign exchange rate and how?


#2

When there is a rise in the visit to foreign countries by the people in India, the demand for foreign currency increases. With the supply of foreign currency ‘remaining same, the foreign exchange rate rises, implying a depreciation of rupee.