Recently the INR has taken a beating. As an Indian retail investor, is there a way to capitalize on this? Assuming that the person is not in the export business. They are a salaried person earning income in INR.
By no means is this a comprehensive list, but a few items to consider:
- As a retail investor, do you know any companies that can benefit from inflation or the INR depreciating in value and can you work/contract/invest with them?
- Based on the interest rates at Everbank (here in the U.S.), can you earn competitive interest on the INR there (a 3 month CD here in the INR pays around 6%)? While this won't be popular to read, when addressing risk at some point the risk of owning something "not liked" becomes less risky than owning something "liked" - see anything by Jim Rogers for details on this (for instance, this video).
- I realize India has strict restrictions on some commodities, are there other commodities you expect to rise in the future if the INR continues being beaten? Any business opportunities you can think of with these?
- Think about what you expect to happen in 2 years and 5 years. Any opportunities you can see?
- If inflation is high, negotiate on your salary, as with inflation you'll have evidence that you are wise to negotiate.
One simplest way is to to do Forex trading. You can do this by buying Foreign Currency Futures when you feel Rupee is going down or by selling those Futures when you feel Rupee will go up.