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According to a Times of India report, the US Dollar has appreciated by 5% over the past year, rising from ₹83.01 on February 10, 2024, to ₹87.45 on February 1, 2025.
So what happens when the rupee weakens?
A weaker rupee means Indians need to spend more on airfare, hotel stays, shopping, and other expenses abroad.
Travel bookings in USD or other foreign currencies become costlier, putting pressure on budgets.
Airline fuel costs and global inflation further compound the issue, making overseas vacations and business trips more expensive than ever.
Travel behavior shifts
Given the trends, business travelers and corporates have already started re-evaluating travel policies.
“The rupee’s decline is prompting a major shift in how Indians approach international travel. Business travelers and corporates are now re-evaluating their travel policies, prioritszing essential trips while turning to virtual meetings for cost efficiency. On the leisure side, high-net-worth individuals who once opted for premium travel experiences are now looking at structured forex planning to manage costs without compromising on luxury,” says Pavan Kavad, Managing Director of Prithvi Exchange (India).
So, how to manage costs amid rupee depreciation?
Use multi-currency forex cards – These help lock in exchange rates and reduce transaction fees on international spending. They are widely accepted at resorts, hotels, and shops, offering a safe alternative to carrying large amounts of cash.
Book flights and hotels early – Advance bookings can help travelers avoid further currency fluctuations.
Stagger foreign exchange purchases – Instead of buying forex at once, spread purchases over time to average out currency fluctuations.
Opt for local payments – Paying in the local currency rather than INR-denominated credit cards can reduce additional forex conversion fees.
Choose destinations with favorable exchange rates – Travelers can consider countries where the rupee holds more value to make vacations more affordable.
Use travel insurance with forex benefits – Some policies offer protection against forex volatility and unexpected cost surges.
A look at how different payment methods fare
| Payment method | Benefits | When to use |
| Prepaid Forex Card | Locked rates, secure, widely accepted | For daily spending, cashless transactions |
| Credit Card (No Foreign Fees) | Good exchange rate, no need to carry cash | For hotel bookings, larger purchases |
| Debit Card (for cash withdrawal) | Easy access to cash in local currency | For emergency cash, ATMs |
| Digital Wallets (Apple Pay, etc.) | Instant, contactless, minimal fees | For small purchases, locations accepting digital pay |
| Cash in Local Currency | Accepted everywhere, no transaction fees | For places that don’t accept cards |
ALSO READ | One way to make money from the weakening rupee
