When foreign exchange rate in a country is on the rise then the demand for foreign currencies will be low. A rise in the exchange rate i.e., $\mathrm{\$}1=$ $\mathrm{₹}40$ to $\mathrm{\$}1$ = $\mathrm{₹}50$ implies that the goods of abroad become more expensive i.e, it now cost $\mathrm{₹}50$ to purchase a commodity worth $\mathrm{\$}1$ instead of ₹ 40 earlier. This would result in a reduction in the demand for the foreign commodities. Thus, there will be fall in imports.