With the increase in the foreign visit by the people India, the demand for foreign currency increases. With the supply of foreign currency remaining same, the foreign exchange rises, implying a depreciation of rupees. This can be explained diagrammatically as follows.

In the diagram, DD and SS are the initial demand curve and supply curve for foreign currency respectively. E is the initial equilibrium point, with OR as the equilibrium exchange rate. An increase in the demand for foreign currencies shifts the demand curve from DD to D′D′ With the shift in demand curve, new equilibrium is established at point E′ where the exchange rate rises from OR to OR1 and the demand and supply of foreign currencies rises from OQ to OQ1. A rise in the exchange rate implies currency depreciation.