The impact of rupee fall on you

The Indian rupee has become Asia’s worst-performing currency in August.
Last week rupee plunged to 72 against the dollar.(PTI photo)
Last week rupee plunged to 72 against the dollar.(PTI photo)
Updated on Aug 26, 2019 11:08 AM IST
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Hindustan Times, Gurugram | ByHT Correspondent

Rupee weakens

Last week rupee plunged to 72 against the dollar over tumbling equities and incessant foreign fund outflows also weighed in on sentiment. The sudden drop in Chinese Yuan also increased volatility in emerging market currencies, said Abans Group in a note. “The Indian rupee has become Asia’s worst-performing currency in August amidst pressure from China’s Yuan, the ongoing trade war, and a massive withdrawal of funds by FPI’s after a change in their tax structure. The rupee has become the worst-performing currency in Asia,” it was noted. However, India was not the isolated case as there has been depreciation across most leading currencies in the world. “The ongoing trade war of the US with China has also had its impact on the dollar as the odds are stacked in its favour,” noted Care Ratings.

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Impact on travel cost

The depreciating rupee can affect your international travel plans. During the period if you plan to travel, if your cost may go up by 3-10%. The main impact is on your forex and the expenses you incur during the trip. Also it depends on the destination of your travel. Say you are traveling to a country where the currency is stronger such as the US, you will find less value for your money. However, if you are traveling to emerging countries where their currencies have also depreciated then you will not see a huge difference. There could be a possibility that in some countries such as Turkey you may find more value for your currency. However, since you can’t predict the movement of the currency, you actually can’t do much. But that doesn’t mean there is no hope.

What you should do?

Firstly book your trip in advance--at least 2-3 months before you plan to travel. If you are willing to explore, you can look for destinations which will give you more value for money. To get the best flight deals book on Wednesday mornings. In case the depreciating currency is impacting the cost of your overall trip, then you can reduce the duration of the trip to fit it in your budget. Buy your forex from place where you have to pay no margin cost as the extra fee will eat into your savings. Also avoid double conversion by changing rupee to dollar to the currency of the destination you visit. In case you are using Forex cards, try and purchase from online portals as the fee will be lower.

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Friday, May 20, 2022