Do you plan to send your kids abroad? This could worry you.
RBI may let USD/INR depreciate to 90.
This could be one of the weapons the government may use to negate the impact of US Tariff.
In fact, this was one of the measures China used in 2018 /19 to counter US tariff then. They let Chinese Yuan depreciate 10% in quick succession to make exports viable.
While our export could be competitive, copying this method for an import heavy nation like India will not be easy.
Now if Rupee slides how can you as investors make money.
USD Global Portfolio: This will offer global diversification and generate returns in USD. This is a good long-term strategy but volatile.
Gold: This is one of the simplest methods to generate returns in USD. Invest in INR gold but make returns in USD as gold is traded in dollars. This is a good medium-term strategy but can produce zero returns for long period of time.
US Treasury ETF: About 3 or 4 AMCs in India offer treasury bond ETF FoF that helps you to buy US G-Sec papers. By investing them you not only make the returns but also protect your portfolio again INR depreciation. Good strategy for short term.
On our app the first 2 options are possible. Check it out.