Diversifying Investments: Considering the Canadian Dollar in a USD-Dominated Portfolio

In a world that is always changing, financial markets are closely linked and affected by many things. One problem that has recently come to the fore is the Indian Rupee's (INR) constant fall in value and instability compared to the US Dollar (USD).

In the last three years, the INR has lost more than 12 percent of its value against the US Dollar, and it is expected to lose even more.

This trend shows that protecting assets from currency risk is not only smart but necessary for risk-adjusted returns and global competitiveness. 

 Diversifying investment portfolios into USD-denominated financial assets may help. The recent geopolitical circumstances also require investment portfolio regional diversification.

This type of portfolio diversification also assists with fulfilling future foreign currency responsibilities, such as the expense of children's education, without incurring the excruciating cost of currency depreciation. 

Furthermore, this technique not only protects against the risk of currency fluctuations, but it also opens up enticing investment opportunities. 

See Also

Comparing the Strengths of CAD and USD: What Drives their Values?