Bad5shah

An increase in nominal interest rates will increase the demand for financial assets denominatd in the country’s currency.”
When you invest in Financial Assets, you have basically hedged inflation. You might remember, investing in commodities hedges against inflation.
So with hedge inflation, increase in nominal interest rates – increase in real rates.
That is what I think, so both statements are correct.
Your statement
“Do nominal interest rates increase demand for the currency” - no, real rates do. No doubt about that :-)
Prabhash