Investing in Indian Bank as a depositor will get you a guaranteed 6-7% return per annum depending on the bank. That would be free money, so it’s already priced

Investing in Indian Bank as a depositor will get you a guaranteed 6-7% return per annum depending on the bank. That would be free money, so it’s already priced into the exchange rate. All other things being equal if you transferred US dollars into an Indian account, left them a year, then transferred back then you would be no better off than if you had left the money onshore, but you would be down the transaction fees. People who make money in FX trading do so by betting that interest rates will move in their favour, and interest rates influence exchange rates (or more accurately expectations about future interest rates set current exchange rates)