Rupee at record low near 89-mark: What it means for overseas education and foreign travel

The depreciation of the Indian Rupee hovering near the 90-dollar mark has already had a financial impact across Indian households, particularly those aspiring for global education and travel.

The rupee’s slide toward the 90-per-dollar mark is no longer just a macro headline. Its impact is being felt inside Indian homes, especially among families planning overseas education or foreign vacations. Every tick above 89 is quietly inflating budgets, widening loan requirements, and reshaping choices around study destinations and travel itineraries.

On November 25, the rupee was trading at 89.26 against the U.S. dollar at 3 p.m. IST, up 0.15% for the day. But the broader trend remains weak. On November 21, it touched a record low of 89.61 per dollar, as global dollar demand continued to climb.

Why the rupee is under pressure

The Reserve Bank of India has pointed to elevated demand for the U.S. dollar as a primary driver of the recent weakness, pressure that could ease only if India and the U.S. manage to clinch a trade agreement. Currency experts say a mix of global and domestic factors is at play.

“The Indian rupee touched a record low of Rs 89.49 per dollar on November 21 amid rising domestic demand for the greenback, and worries about imported inflation, higher input costs, and intensified pressure on import-heavy sectors,” said Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd.

The U.S. Federal Reserve’s monetary policy adds another layer. Higher U.S. rates strengthen the dollar, pulling money away from emerging markets. With the next Fed decision due soon, market expectations of a rate cut—probability at 81% on Polymarket—have swung sentiment. “The probability of another rate cut has given investors fresh confidence,” said Edul Patel, CEO of Mudrex.

How the weak rupee is inflating study-abroad budgets

For students heading overseas, the rupee’s fall has a direct and immediate impact.

“A year ago, when the rupee hovered around Rs 83, a U.S. university charging $40,000 annually worked out to about Rs 33 lakh. Today, the same fee costs over Rs 36 lakh even though the university hasn’t changed its prices,” said Pavan Kavad, Managing Director, Prithvi Exchange (India) Ltd.

The pain extends to other destinations too. In the UK and Canada, students are shelling out Rs 8,000 to Rs 18,000 more each month on accommodation, groceries and transport. A £2 bus ride or a $10 meal now takes a visibly bigger bite out of student budgets.

Unsurprisingly, families are recalibrating plans: reworking loan requirements under the Liberalised Remittance Scheme (LRS), delaying admissions, or shifting to cost-friendlier destinations like Germany, Ireland and Malaysia, where tuition subsidies or lower living costs provide breathing room, added Kavad.

Foreign travel is also getting pricier

Leisure travel is seeing a similar shift. “A holiday in Europe that used to cost Rs 2.2 lakh per person can now exceed Rs 2.6 lakh due to costlier hotels, internal flights and everyday spends,” said Kavad.

As a result, Indian tourists are gravitating toward destinations where the rupee holds more value. Places like Thailand, Vietnam, Bali and Oman are benefiting, with travellers opting for shorter trips, group packages or off-season itineraries to keep overall costs in check.

“It is pushing Indian travellers to plan earlier, build exchange-rate buffers into their budgets, compare destinations more strategically, and even consult financial advisors. Currency awareness is becoming as important as visas, university rankings, or travel itineraries,” Kavad added.