A rise in the exchange rate say from $\mathrm{\$}1=\mathit{₹}40$ to $\mathrm{\$}1$ $=\mathrm{₹}50$ implies that domestic country's export to foreign countries have become cheaper because now foreigners can purchase $\mathrm{₹}50$ worth of goods for $\mathrm{\$}1$, as compared to the earlier situation where they could purchase only ₹ 40 worth of goods for $\mathrm{\$}1$. Thus, this raises the demand for exports.