When the price of the foreign currency falls the supply of the foreign currencyalso falls, explain why.

it happens in accordance to law of supply. when the price of a currency falls its purchasing power decreses and subsequently, possessors of that currency will procure less in the international market with the same amount of that currency. in such case they will be willing to spend less at that time at that exchange rate. hence less of that currency will go into circulation in the international market, which will result in the fall of supply of the currency.