I'm looking to purchase a property in India, where the local currency is INR. My earnings are in USD. My down payment on this property will be in the range of 100-200k USD. The USDINR exchange rate has been quite volatile the last few months, and quite a few of the reports I've read indicate that the volatility is expected to continue in the long term, even after the RBI steps in.
Let's say I transfer my money when the exchange rate is 1 USD to 50 INR, I'd like to hedge myself against any potential downside, that is, I don't want to lose money if the USD appreciates further against the INR, after my transfer (i.e, if the exchange rate changes to 1:55, I don't want to have lost that theoretical $10,000-$20,000 that I would've saved if I waited and transferred the money later).
How can I hedge myself against this? How much money would I need to spend to do this hedge? If the USD depreciates how much money can I expect to lose on the hedge?