The Indian rupee is at a record low of 90.56 against the dollar. This fall is a golden opportunity for NRIs to send money and invest in India. The interest earned on investment makes it a profitable deal despite further depreciation of the rupee.
The value of the Indian rupee has fallen to its lowest ever level. On December 3, the rupee crossed the 90 level against one US dollar. Last day it fell further by 10 paise to reach 90.56. The value of the rupee, which was below Rs 84 in May this year, has fallen by 7% within six months.
This is a golden opportunity for NRIs
Due to this huge fall in the rupee, expatriates earning dollars abroad will get more value by converting their currency into Indian rupees. In such a situation, the question arises whether this is the best time to send dollars home and invest here? If the value of the rupee falls further, the opportunity to exchange money at a higher exchange rate may be lost. But, if the rupee strengthens, there will be benefits of exchanging money at the right time. Some institutions estimate that the value of the rupee may reach back to 86 by the end of 2026.
sure profit on investment
Even if the value of the rupee falls further, the expatriates will not suffer any loss. For example, if you exchange currency at the rate of Rs 90 now and invest that money in schemes like fixed deposit, then you can get interest of up to 6-7% in the next one year. Experts say that even if the value of rupee goes up to 95, taking the interest into account, it is beneficial to exchange the money now.
Why is the rupee falling?
Withdrawals by foreign portfolio investors, rising trade deficit, uncertainty over the India-US tariff issue and high demand for the dollar are all reasons for the fall in the rupee. So far this year, FPIs have withdrawn more than $17 billion. Repayment of dollar loans by corporates and outflow of dollars for education and foreign investment are also putting pressure on the rupee. Experts also believe that RBI may be trying to reduce the value of rupee to make Indian exports more competitive.