Domestic current account deficit results in excess demand for domestic currency at the foreign exchange market, which causes the nominal exchange rate of that currency to appreciate

Domestic current account deficit results in excess supply of domestic currency at the foreign exchange market, which causes the nominal exchange rate of that currency to appreciate

Domestic current account deficit results in excess supply of domestic currency at the foreign exchange market, which causes the nominal exchange rate of that currency to depreciate

Domestic current account deficit results in excess demand for domestic currency at the foreign exchange market, which causes the nominal exchange rate of that currency to depreciate