The Indian Rupee is at War and is the worst Asian currency.
On one side imports and associated business are becoming costlier whereas
exports are making good money. Recent Q3 revenue of Indian companies driven by exports reported higher
revenue in terms of Rupees, thanks to Rupee
Falling. The fluctuation of Rupee Vs Dollar has been a boon to NRI (Non
Resident Indians). Around six month ago the USD – INR exchange rate was
hovering around Rs 44 to $ 1 whereas today it is Rs 50.5238. The better exchange rate coupled with
investment option, is visible in the
World bank Report. The Report states that Indians across the world are leading
the global remittance.
Just sending money is not enough. You need to plan it. Some
of the ways NRI can utilize the Rupee Vs
Dollar fluctuations are
1-
If you have bought a home loan in India, now you
can transfer more money to finish the pending EMI(Equated Monthly Installment)
at the earliest. Good News is that Reserve Bank of India has decided to remove Prepayment
penalty on home loans. In addition Prospective buyers can also invest
freshly in real estate market. So a flat that used to cost Rs 1 crore (1,00,00,000)
6 months back is now available to NRIs at less price. This is equivalent to a builder
offering you a cash discount . Having
trouble doing the math? Just google and you will get your answer
2- The
Indian stock market is at its low. Lot
of blue-chip stocks, with strong fundamentals are available at bargain price. Investing
in equity is one of the good options. You can set up a Systematic Investment
Plan (SIP) to buy the stocks. Global
debt crisis, slowing world economies and rising inflation etc can cause stock
markets to fall further. So SIP is a good alternative.
3- The
interest rates on NRE (Non-resident External) and NRO(Non-Resident Ordinary) accounts have increased. The money you
save in these accounts will provide you better returns due to higher
rates. Current NRO account interest rates
for 1 year is in the range of 9.00% to 9.25% at banks such as HDFC Bank and Bank
of Baroda. Transfer money to these accounts and save more money during Rupee Falling
4- There
are people who want to do good to the society. You might be thinking that a small
contribution will not make a good difference. But if you transfer $100, it is
equivalent to Rs 5000. This contribution will not only help you get tax rebate
but also help a person in need
Keep In mind the
different options you have and with good planning you can utilize the current Rupee Vs Dollar fluctuations to your
advantage. Remember with every opportunity there is also a risk. For instance if
you buy a mortgage loan for long term, the favorable exchange rate will not
stay forever. So you might have to shell out more money to meet your ambitions.
So before you spend, consider other personal goals and the availability of
funds before making use of the Rupee
Falling
