How Currency Exchange Rates Impacts NRI Investments?

Generally, yes; however, a daily review isn't necessary, but reviewing them before making any major investment decision will be helpful. 

As an NRI, you must look for diversifying your investment portilio acorss indian assests, home country assets, global funds, and so on. Ensure to take the help of an NRI investment professional. 

Yes, while interest is fixed, the return on your foreign currency depends on INR movements. 

Repatriation converts the indian rupee proceeds to the home currency at the weak INR. The NRI gets more foreign currency. whereas a strong INR lowers the repatriated value. 

A depreciation in INR amplifies the INR gain when it is converted back to the foreign currency; for example, Rs 10 L investments grow to Rs 12 L, offering a 20% return. Whereas appreciation reduces this by lowering the real returns.