 "Tipping point: Counter the impact of falling rupee, don't pull out money")
The rupee has depreciated 3.5 per cent against the US dollar over the past month and is currently at 71.6. Investors should not worry excessively about the falling rupee. One, it has been hit less hard than many other emerging-market currencies. Foreign portfolio investors (FPIs) don’t always pull money out during phases of rupee depreciation, as many prefer to take a longer-term view of Indian equities.
Moreover, with a well-diversified portfolio, you should be able to counter the impact of a falling rupee. The IT sector benefits from this phenomenon. Gold and international funds, too, act as currency hedges.
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