Rupee’s Slide May Affect Your Foreign Plans This Summer Holiday; Depreciating Rupee Can Also Affect Students Studying Abroad

The slide in dollar, will not only affect flying tickets but also your room tariff and local conveyance as everything gets paid in the foreign currency

The rupee is sliding against the US dollar and it may crash your plans to travel abroad. The rupee has fallen to 67.27 per US dollar, which is its lowest since February 8, 2017. It breached the 67 level on Monday and ended at 67.13 against the US dollar. There are forecasts that the slide may continue and it may fall to 70 level this year. The rupee has been falling on the back of rising crude oil prices, deteriorating India’s trade balance with the US.

Highlights

Indian ruppee is sliding against the dollar
The slide in dollar may affect your international travel plans
The ruppee is expected to touch Rs70 this year

The decline has been happening at a time when most Indians chart out their summer vacation plans. In such a situation prospective travellers either have to shell out more for foreign trips or need to select alternative holiday destination where Indian rupee is more stable. Instead of the US and Canada, you can consider going to Austraila and Europe where the currency is more stable for Indian travellers. You can also consider travelling within India to unexplored places such as Meghalaya and Kashmir, among other places.

The slide in the dollar, will not only affect airline tickets but also your room tariff and local conveyance as everything gets paid in the foreign currency. To soften the blow you can either reduce the number of days or switch to a lower category hotel and keep the cost under control. Those who have already paid and booked their tickets and hotels will not be impacted by the downfall.

To give you an idea, Rupee weakened from 63.58 on Jan 31st to 64.02 on Feb 1st 2018 when on the Budget day capital gains tax was introduced. It continued to depreciate from 64 to 65 during the month of February. The fall in rupee was later controlled, when it touched Rs67, with some intervention being reported by the forex trading desks of the banks.

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How much is more pain likely in the Rupee? According to experts, the rupee is likely to remain under pressure in the near term if the US yields jump higher from the current levels and oil prices increase.

Not only on your travel plans the immediate impact can be on students studying abroad considering US and Canada are some of the most preferred destinations.