The value of the Indian rupee, or any other currency, is determined by the demand for it. When demand for a currency rises, so does its value (it is termed “appreciation”). As more international investors make investments in India, the demand for Indian currency rises. While overseas investors and corporations can only invest in rupees in Indian marketplaces, they must first convert their money into rupees before investing or purchasing things from India. As a result, demand for the Indian rupee rises, and its value rises against the US dollar and other currencies.