If inflation in Country R is lower than inflation in Country T, more people in Country T will want to buy Country R’s goods, because they will cost relatively less. The increased demand for Country R's goods will lead to increased demand for its currency. The increased demand for its currency will lead to appreciation of Country R's currency relative to Country T's currency, not depreciation.
A more restrictive monetary policy in Country R will cause economic growth in Country R to slow. This will cause people in Country R to purchase fewer imports from Country T. The decreased demand for Country T’s currency will cause Country T’s currency to depreciate relative to Country R's currency, and, at the same time, Country R's currency will appreciate relative to Country T's currency, not depreciate.
If real interest rates are higher in Country T than in Country R, more people will want to invest in Country T. This will cause the demand for Country T's currency to increase, and that will lead to appreciation of Country T's currency relative to Country R's currency. When Country T's currency appreciates relative to Country R's currency, Country R's currency depreciates relative to Country T's currency.
A rapid rate of growth in income in Country T would not cause imports to lag behind exports. It would cause the opposite – imports into Country T would be greater than Country T’s exports. The increased demand for imports from Country R would cause Country R's currency to appreciate relative to Country T's currency, not depreciate.
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