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I have a field called ac_id, I want to update this field with combination of other two fields, Other two fields are lookup fields.
I am using process builder to update, the formula used for the update is here
Domicile_Country__c &" "& AIC_Currency__c
but it is updating with the record ids, I'm stuck please help me
It will update with id's because you haven't specified which field to be used. Your formula should be something like this: Domicile_Country__r.Field_Name__c &" "& AIC_Currency__r.Field_Name__c
Sample example: I tried on my Dev org to update Name field of Opportunity using Process builder. I used this Formula: [Opportunity].Account.Name + " " + [Opportunity].Account.Id. See below image for reference: 
And this is how your Output looks:
Specify the fields which you want instead of just specifying objects.
