Let's arrange the sequence of events resulting in the depreciation of the domestic currency:

(B) Suppose there is increased international traveling by Indians: Increased international traveling by residents of a country can lead to an increased demand for foreign currency.

(C) This means that there is an increase in demand for foreign exchange: The increased demand for foreign currency due to increased international traveling causes a shift in the demand curve for foreign exchange.

(A) The demand curve of foreign exchange will shift upwards and right to the original demand curve: Due to increased demand for foreign exchange, the demand curve for foreign exchange shifts upwards and to the right.

(D) This will result in an increase in the foreign exchange rate: The increased demand for foreign exchange leads to an increase in the foreign exchange rate, causing depreciation of the domestic currency.

So, the correct sequence of events is: (1) , (B), (C), (A) ,(D)