DNA Special: Planning a foreign trip? Know if falling Rupee will increase your travel cost and what's the quick fix

The weakening Indian rupee is hitting the common man’s pockets in India by making imports costlier and increasing rate of inflation, thereby also reducing net returns on investments. 

Those who travel frequently by air or planning a foreign trip are concerned that the falling Rupee will increase their travel cost. However, experts are of the view that travellers planning to go abroad are unlikely to be hit significantly as other currencies across the globe are also falling against the US Dollar.

The Rupee, which stood at 73.33 to a US Dollar on January 12, 2022, now stands at 79.90. It plunged to a record low against the US Dollar for the fifth straight session on Friday and opened 5 paise lower at 79.92 against the US Dollar. 

The Rupee has depreciated by 7.49 per cent against the US Dollar since January 2022 amid outflow of foreign investments, tight monetary policy by the US Federal Reserve, surging crude oil prices and general Dollar strength. This has been further aggravated by the ongoing Russia-Ukraine war. 

So, the question arises whether those planning to travel abroad should delay their trip? Simply speaking, yes! 

However, to what extent your trip might get costlier depends on many factors. When travelling abroad, you need to exchange the domestic currency into the currency of the destination country. 

A weakening Rupee means that you need to shell out more money to exchange the same amount of currency as compared to earlier. However, it is unlikely to affect you much if the currency of your destination country is also falling. 

For instance, the Euro, which was quoted against the rupee at Rs 83 sometime ago, is now under Rs 80. A weaker Euro will make travelling to European countries like Greece, Italy and Paris cheaper as costs like accommodation, meals and fees at attractions are covered in the Euro component. 

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.

To minimise the impact, travellers can buy forex cards as they may 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.

It is also advised to plan your plan and make the bookings well in advance with special discounts and offers.