​Image as the question exceeds 500 charecters.

Yes, it is perfectly absolutely perfect. Depreciation of domestic currency (say Indian Rupees) in terms of a foreign currency (say USD) implies Indian Rupees has become cheaper in relative terms of USD. In other words, we technically regard this as appreciation of USD implying USD has become more powerful or simply, USD has more purchasing power in relation to Indian Rupees. Now, whenever, depreciation of Indian Rupees happens in terms of USD, then it implies that Americans who hold control over Indian assets or investments made by them in Indian has experienced a raise. This is certain to raise the FDI inflows to India especially from US, since they can purchase more of Indian assets now. As quoted in the question, the US investors if s/he keeps the same level of investment say USD 100, then it means that his/her investment is worth Rs 6000 compared to Rs 4500 earlier. However, it is difficult to suggest whether the same investor is going to invest more say USD 150 or invest lesser say USD 75, since it depends on numerous factors- prevailing interest rates, Government of India's FDI policy, growth prospects of Indian investments and assets, presence of equal or more promising investment ventures in the ROW, etc.

But this depreciation of Indian Rupees will surely attract more FDI from new investors looking at the rise from Rs 4500 to Rs 6000 along with some decent figure of interest amounts.


This can be thought of quite similar to your behaviour and reaction, say if you experience a price drop for iphone 6 or say a pair of shoes on flipkart. Are you going to buy 2 pairs of shoes, if the price drops from Rs 6,000 to Rs 4,500 or you will still wait for the price to drop to Rs 3,000 or some more low? This is a subjective call and may vary from person to person.