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The appeal of India's(?) products rises or falls. The appeal of American products rises or falls The interest or income that can be earned by buying foreign currency rises because that country pays higher rates of returns for the same amount of risk The stability of the country changes. As political stability declines (fear of nationalizationh or higher taxes etc) the value of the currency declines because of the risk premiun rises. If stability is more assured the risk premium is reduced. THe value of a country's resources of production increases (oil discovered) and people need that country's currency to buy that country's goods.

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