Rupee Hits All-Time Low: What It Means For Your Travel, Foreign Studies And More | Savings and Investments News

Students heading overseas are among the worst affected when the rupee weakens.

The Indian rupee fell to a fresh all-time low of 89.85 against the US dollar today, briefly threatening to slip past the psychologically crucial Rs 90-per-dollar mark before the Reserve Bank of India (RBI) stepped in to stabilise the slide. The currency is weakening despite strong domestic fundamentals- robust GDP growth and moderate inflation- as global flow pressures, record foreign investor outflows, a widening trade deficit, importer dollar-hoarding.

Here’s a breakdown of how a falling rupee affects your travel plans, overseas study and other expenses:

Will Foreign Travel Get More Expensive?

A weaker rupee means you need more rupees to buy the same amount of dollars, which immediately makes international travel costlier. Expenses such as air tickets bought from foreign carriers, hotel stays, meals, local transport abroad and tour packages priced in USD or EUR all become more expensive. Even visa fees, airport shopping, museums and tourist attractions cost more in rupee terms. Families travelling to destinations like the US, Europe, UAE, Thailand, Singapore, Australia or Japan will feel the pinch the most.

Will Studying Abroad Become Costly?

Students heading overseas are among the worst affected when the rupee weakens. Tuition fees billed in USD, EUR, GBP, CAD or AUD rise sharply in rupee terms. Day-to-day expenses such as rent, groceries, utilities, student insurance and transportation also become costlier because they are paid in foreign currency. Deposits like GIC in Canada or I-20 fee conversions in the US shoot up as well and education loans require larger rupee payouts. Students heading to the US, UK, Canada, Australia and Europe will face significantly higher education budgets.

What About Imported Items?

India imports a large share of its consumer electronics, high-end appliances and premium goods. A weaker rupee increases the import bill for companies and this additional cost is often passed on to consumers. Prices of smartphones, laptops, PCs and tablets, as well as TVs, gaming consoles, cameras, lenses, premium kitchen appliances and even luxury cars and EV components may all see upward revisions. Imported packaged foods such as chocolates, sauces and cereals also become pricier.

Will Medical Treatment Abroad Be More Expensive?

Indians travelling for medical treatments in the US, Europe, UAE, Singapore or Thailand face higher out-of-pocket expenses when the rupee falls. Hospital fees, specialised consultations, diagnostic tests, long-term medical stays and even travel arrangements become more expensive. Overseas medical insurance premiums also rise in rupee terms, making even pre-planned surgeries and procedures more financially demanding.

Why Is Rupee Falling This Time?

The rupee’s decline is being driven by a combination of unfavourable global and domestic factors. Foreign investors have withdrawn nearly $17 billion from Indian equities this year, pressuring the currency. India’s trade deficit and current account deficit are widening, adding strain on the rupee. Importers have been aggressively buying dollars early to hedge against further weakness, while exporters are delaying conversions in hopes of a better rate, worsening dollar demand.