Assume that a country increases its domestic money supply. If the overshooting theory is correct, how could

Question:

Assume that a country increases its domestic money supply. If the "overshooting" theory is correct, how could a central bank prevent the from depreciating too much in the short run?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...