Rupee At Record Low: Is it a good time to delay THAT foreign trip?

After the pandemic – where travellers were unable to take that exotic international trip - 2022 was supposed to be the year of ‘revenge tourism’. After international flights resumed earlier this year, outbound tourism looked set to take off, notwithstanding the soaring ticket prices.

But with the rupee at a record low against the US Dollar, does this impact any foreign trip you are about to take? We explain how this rupee fall could easily hurt your pocket and send your travel budget out of gear. But the good news is that other currencies around the world are also falling, so the impact could be negated.

The rupee has depreciated by about 7.5 per cent against the US dollar since January 2022, due to the outflow of foreign investments, tight monetary policy by the US Federal Reserve, surging crude oil prices and general dollar strength. This has been aggravated by the ongoing Russia-Ukraine war.

The rupee closed at 79.99 against the dollar on Thursday – almost touching the psychological 80 mark.

Should you delay your trip?

Short answer, yes. But there are factors which might not really hurt your pocket as much. If the currency of your destination country is also falling, like the Euro for example, it is unlikely to affect you. The Euro, which was quoted against the rupee at Rs 83 sometime ago, is now under Rs 80. But if the currency of that country is still strong, for instance the Singapore Dollar- then yes.

Travellers going to the US or other countries whose currencies are pegged to the dollar will need to shell out more money for their international trip as the rupee slides.

Is there a solution?

Buy forex cards, they might insulate you against the currency fluctuations considerably and allow you flexibility. Also, payment for cruises and international rail travel can be made in Indian rupees and are great value savers; also travel passes, like the Swiss Pass, offer great all-included transport options. Travellers who had bought international holidays well in advance with special discounts and offers are also not impacted by the current fluctuation in the rupee.