How rupee fluctuations affect your investment.
How rupee fluctuations affect your investment.
- If the rupee falls in value, the rupee returns on commodities such as gold increase, (assuming that international gold prices remain constant)
- If the rupee appreciates in value, the rupee returns on gold decline
- An investment in overseas assets will fall in value if the underlying currency depreciates, and investors will tend to lose out
- But a strengthening currency will result in gains for investors in overseas assets such as property and bonds (assuming that asset prices remain constant)