With the Indian rupee losing value against the dollar, many investors are seeing a clear advantage in adding US stocks to their portfolios.
Why the rupee’s slide matters
The rupee has been falling about 3% each year for the past decade. In 2025 it slipped another 6%, reaching around 91 per dollar before nudging back to about 89.5. A falling rupee means that any money earned in dollars turns into more rupees when it’s converted back.
US stocks often beat Indian benchmarks in rupee terms
Even though Indian shares like the Nifty 50 have delivered strong returns, the S&P 500 usually gives higher gains when you look at the final amount in rupees. The extra boost comes from the currency difference.
Simple numbers show the effect
- If you invested ₹1 lakh in the Nifty 50 in 2015, a 232% rise would turn it into about ₹3,32,460.
- The same ₹1 lakh put into the S&P 500 would have grown 230% in dollar terms. Converting at an average rate of ₹88.68 per dollar, it would be roughly ₹4,36,100 – about ₹1,06,000 more than the Nifty investment.
- Because the rupee has weakened further to around ₹89.5, the difference could now be close to ₹1,13,200.
What experts say
Harshal Dasani, Business Head at INVAsset PMS, points out that currency acts like an “invisible driver” of wealth over long periods. He notes that Indian investors in the S&P 500 not only enjoyed dollar‑based compounding but also gained from the rupee’s steady depreciation – moving from the mid‑₹60s per dollar in 2015 to nearly ₹88 today.
His advice is not to chase overseas markets for short‑term gains, but to build a “structural diversification” plan. Keep Indian equities as the core growth engine, while adding global stocks to protect against rupee erosion and broader economic shocks.
Why diversification helps everyday goals
Many Indian families aim for expenses that are priced in dollars – such as overseas education, travel, healthcare, and retirement. Holding some assets in dollar‑denominated stocks helps preserve purchasing power for these future needs.
Takeaway
Relying solely on rupee‑based investments can limit growth when the currency keeps losing value. Adding a portion of global equities, especially US stocks, can boost returns in rupee terms and act as insurance against currency risk.
Remember, this is perspective, not a prediction. Do your own research and consider speaking with a certified financial adviser before making any changes to your portfolio.