The rupee’s fall to a historic low is hitting Indian families right where it hurts most — education budgets and travel savings. With the currency brushing 89.79 against the US dollar, people planning to study overseas or take a long-awaited holiday are feeling the pinch immediately.
A Steep Slide That’s Making Everyone Nervous
The latest drop pushed the rupee beyond its previous low of 89.49 touched just two weeks ago.
For many, this wasn’t just another market headline — it was a gut punch.
A one-sentence moment: Every extra rupee lost to the dollar turns into thousands more in outflow.
Currency watchers say the 2025 decline has piled unexpected pressure on students, families, and even small tour operators scrambling to update prices.
Why Students Abroad Are Hit the Hardest
Indian students studying overseas were already dealing with rising tuition and global inflation.
Now the falling rupee adds a painful layer, raising yearly expenses in a way that’s pretty tough to absorb.
“Even a small fluctuation in exchange rates can add lakhs to their annual outflow,” said Gagan Malhotra of BookMyForex.
One short standalone line: And this wasn’t a small fluctuation.
Many parents who planned budgets months ago say those calculations suddenly look thin. Some are topping up education loans, and others are dipping into emergency savings they hoped to avoid touching.
Here’s something that helps illustrate what’s happening:
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Every ₹1 depreciation against the dollar increases yearly cost for a US-based student by ₹35,000 to ₹60,000 depending on tuition and living expenses.
The emotional load feels just as heavy, with several students calling the situation “unpredictable” and “honestly a bit scary” — because no one knows where the rupee will settle next.
Travel Plans Are Getting Pricier Too
International holiday budgets are taking a hit as well.
Families who spent months saving for New Year or early-2026 vacations are now finding their hotel bookings, meals, and activity plans more expensive than they expected.
A quick single-line paragraph: Some are even postponing their trips.
Tour agencies say costs for Europe, the US, and Japan saw noticeable jumps in the past 30 days. Travel payments made in dollars — flights, cruises, theme park passes — feel heavier on wallets overnight.
To put things in perspective, here’s a small comparison table showing the increased cost because of the rupee’s fall:
| Expense Category | Cost at ₹89.49/USD | Cost at ₹89.79/USD | Difference |
|---|---|---|---|
| $2,000 holiday expense | ₹178,980 | ₹179,580 | +₹600 |
| $10,000 tuition fee | ₹894,900 | ₹897,900 | +₹3,000 |
| $50 daily spend (10-day trip) | ₹44,745 | ₹44,895 | +₹150 |
The sums may look small in isolation, but stack them up, and you’re staring at a meaningful jump — especially if your plans stretch over months.
Why the Rupee Is Falling, and Why It Matters
Economists point to multiple factors — stronger US dollar trends, global uncertainty, and capital outflows.
Some also mention India’s higher import bills, especially for energy, putting pressure on currency reserves.
One quick line: It’s a mix that makes the rupee wobble faster than expected.
In a market where global investors chase safer assets, the dollar often strengthens, leaving currencies like the rupee exposed. That might sound like textbook stuff, but it hits everyday folks in a deeply practical way — monthly EMIs rise, student loan disbursals shrink in value, and travel budgets lose their cushioning.
Different households experience this differently, which is why economists say a falling currency rarely hurts evenly.
Middle-Class Families Feel the Strain the Most
For middle-income households — the group aspiring to foreign degrees and vacations — this slide feels personal.
Parents supporting kids abroad usually plan down to the last rupee, so sudden shifts like this force uncomfortable financial pivots.
Some banks are already reporting a slight rise in loan enquiries tied to study abroad plans.
A shorter single-sentence paragraph: Families say the same thing: “Everything got expensive overnight.”
The pressure is more visible because inflation at home hasn’t eased much either, stretching budgets from both ends. At the same time, domestic job markets aren’t compensating with higher pay, leaving a financial mismatch that’s hard to ignore.
What Happens Next for Students and Travellers
Many education consultants say students may start looking at alternative study destinations like Germany or the Netherlands, where tuition is lower.
Meanwhile, holiday planners might shift toward Southeast Asia, where currency differences aren’t as punishing.
Another quick one-liner: But none of this fully offsets the emotional frustration of seeing savings lose value without warning.
Banks and forex firms, meanwhile, are pushing hedging solutions, though many families still find them confusing or feel they’re unnecessary until things get worse. But with the rupee floating so close to 90, several advisers warn the volatility could continue into early 2026.
Travel companies also expect more last-minute bookings instead of early planning — people prefer waiting to see whether the exchange rate settles.
Some experts say the rupee might strengthen slightly if global conditions cool off early next year, though others argue the currency could breach the 90 mark if the US dollar keeps gaining ground.
One last single-line pause: No one wants to say it out loud, but that risk is definitely there.
