Daijiworld Media Network - New Delhi
New Delhi, Dec 1: The Indian rupee plunged to a fresh all-time low of 89.79 against the US dollar on December 1, breaking its previous record of 89.49 set just two weeks ago. The steady slide has begun to pinch Indian students studying abroad and families planning international holidays, stretching their budgets and complicating financial planning.
Experts say even a minor fluctuation in exchange rates can push overseas education costs up by lakhs. “A small shift adds significantly to annual outflow, making planning extremely difficult,” said Gagan Malhotra, COO of BookMyForex.
Eela Dubey, co-founder of EduFund, described rupee depreciation as “hidden inflation” for students abroad, noting that they pay more in INR even when tuition fees in USD remain unchanged.
Rising day-to-day expenses — from groceries to accommodation — are adding further strain, especially on middle-class families who already depend on loans and savings to meet rising overseas education costs.
To offset the impact, Malhotra suggested a balanced approach: use forex cards for everyday spending, opt for wire transfers for tuition, keep a small emergency cash fund, and lock in exchange rates early to avoid future depreciation. Forex cards, he noted, help avoid foreign transaction fees and offer stability compared to INR-denominated cards.
He also advised students to open local bank accounts in their destination countries to better manage budgets and reduce conversion charges. Parents looking to reduce risk can explore forward contracts, which lock in favourable forex rates ahead of time. Cutting discretionary spending, sharing accommodation and exploring part-time work opportunities can also help students stay afloat.
Financial planners say a robust overseas education strategy should combine investments, education loans and scholarships. Dubey recommended USD-denominated assets and passive US ETFs as a hedge against rupee volatility, while diversified Indian equity funds can help counter rising education inflation. Choosing lenders with lower interest rates and flexible repayment terms, she said, can significantly ease the burden.
The rupee’s fall has also made foreign leisure travel costlier. “A European holiday that once cost around Rs 2.2 lakh now exceeds Rs 2.6 lakh,” said Pavan Kavad, Managing Director of Prithvi Exchange (India) Ltd., pointing to higher hotel, flight and daily expenses.
He suggested travellers consider destinations where the rupee holds stronger value, particularly in parts of Southeast Asia. Early booking, group travel, and making use of loyalty programmes, air miles, forex cards and seasonal forex deals can further cut costs.
With the rupee showing no signs of stabilising, both students and holiday-goers are tightening their plans as international expenses climb higher.