Safe ways Indians can keep their money when the Rupee feels unstable

In 2025, the rupee depreciated by about 4.5% and reached record lows (around 88-89 per USD). There were even forecasts suggesting it could drop further to 90 per USD. Moments like this can be troubling for Indians keeping money in rupees. The reasonable reaction is to start looking for safer ways to store money using means that protect the value of the savings. This guide explains the safest ways to keep your money when the rupee feels unstable, so you don't lose it to local economic problems.

Also read: A guide for Indians getting paid by clients abroad

Hold foreign currencies

Keeping money in relatively stable currencies like USD, EUR, or GBP ensures you don’t lose money whenever the rupee’s value drops due to local economic policies and events. Here are some options for holding foreign currencies in India.

• Using multi-currency accounts: Digital payment platforms like Grey, Wise, Revolut, and Payoneer offer multi-currency accounts that let you store, receive, and convert foreign currencies (USD, EUR, GBP) at competitive rates. Managing stable foreign currencies like EUR, USD, and GBP is an excellent option for Indians wary of losing money if the rupee’s value is unstable.
• Opening a dollar account: Many Indians use USD savings accounts at local banks such as SBI, HDFC, or ICICI. Non-resident Indians can open foreign-currency non-resident accounts that offer tax-free interest and protection against rupee depreciation.

Also read: How to open US, UK, and Euro bank accounts in India

• Simple hedging: This option might seem tricky at first, but let’s break it down. It involves reducing losses on your current savings by fixing conversion rates ahead. Think of it as coverage for your assets. If you have USD, you can fix the exchange rate with forward contracts, allowing you to convert to rupees later at the same rate. That way, you swap at your locked rate anytime, ignoring market ups and downs. It’s handy for future overseas outlays, such as studies or trips, and helps you plan your finances better.

Investing in valuable metals

Valuable metals serve as a guard against rate changes. Their worth tends to climb whenever the rupee becomes shaky. You can invest in physical gold (coins and bars), old ETFs, and sovereign gold bonds (SGBs), which also pay yearly interest. Silver is another precious metal many Indians use as a store of wealth.

Look into securities and bonds

You can hedge against rupee depreciation by investing in US dollar-denominated assets. These bonds and securities tend to appreciate as the rupee weakens.

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Diversifying your portfolio

A diversified portfolio that includes both domestic and international markets can provide a natural hedge against rupee volatility. For instance, some investors use a split between USD-based, rupee-based, and commodity investments. Spreading your money across different asset types protects you from sudden losses. Options include:

• Mutual or index funds: These provide automatic diversification by pooling money from various investors and spreading it across various investments.
• Debt funds (bonds/fixed income): They are generally considered lower risk and can provide stability during stock market downturns.
• Equity funds (stocks/shares): These carry a higher risk but offer the potential for greater long-term growth.

Many Indian banks and investment platforms offer straightforward ways to get started with these options.

Investing in real estate

Real estate offers a tangible asset that tends to appreciate over time and can generate rental income, providing a potential safeguard for wealth preservation. Investing in real estate can serve as an effective hedge against rupee depreciation and inflation. You can have some of these properties outside India to further diversify your investment.

Also read: How remote workers in India can switch from traditional banks to Grey

Managing your money the safe way

The take-home here is to ensure you don’t keep all your eggs in one basket. Diversifying your investments is the most effective way to avoid sleepless nights whenever the rupee feels uncertain. Platforms like Grey make it easier and safer for Indians to hold multiple currencies with transparent, low fees, and favourable exchange rates. Grey remains a secure and efficient way to hold and manage funds in USD, EUR, and GBP.

Get started with Grey today to manage money the safe way.

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