What happens in the foreign exchange market when the price of a foreign currency (exchange rate) falls below its equilibrium value?

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There is a surplus demand for that currency in the foreign exchange marketThere is an oversupply of the currency in the foreign exchange marketThe demand curve for foreign currency moves outward to the rightThe demand curve for foreign currency shifts inward to the left

Explanation

When the exchange rate is set below the equilibrium price, the quantity demanded of the foreign currency exceeds the quantity supplied, resulting in excess demand in the foreign exchange market.