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sir don’t you think that the definition of functional currency i.e. “currency of the primary economic environment in which the entity operates” and the primary+secondary charactiericts point towards opposite directions?
As in if i operate in USA(meets definition-currency of primary economic environment-$), but mostly deal in Indian Rupees- INR(meet primary and secondary characteristics) then here there is clear dichotomy between what meets definition and what meets the indicators.
Most importantly it will be very clear in the exam.
You need to use the primary and secondary indicators. So, if based in USA, but operate in rupees, then functional currency is rupees. Location of operation is not relevant.