
The Indian rupee weakened by 22 paise to 90.54 against the US dollar in early trade on Wednesday, February 4, 2026, giving up part of the sharp gains recorded in the previous session amid suspected dollar buying by corporates and importers.
According to forex traders, the pullback came despite improved sentiment after India and the United States reached a trade understanding. However, the absence of a formally signed agreement or final documentation has kept currency markets on edge.
At the interbank foreign exchange market, the rupee opened at 90.35 against the dollar and slipped to an intraday low of 90.54, marking a decline of 22 paise from its previous close.
Rupee volatility and travel worries
With the rupee sliding again, is an international holiday in 2026 about to become unaffordable for Indians?
In the previous session, the Indian currency had emerged as the best-performing Asian unit, rallying 117 paise—or 1.28 percent—to close at 90.32 against the US dollar. The surge was driven by optimism surrounding the India–US trade talks, which boosted overall risk sentiment.
Despite recent volatility, analysts expect the rupee to remain range-bound in the near term, with movements closely tracking global cues and further clarity on trade negotiations.
For Indian travellers, a softer rupee often sparks fears of costlier flights, pricier hotels and inflated daily expenses abroad. But does a weak rupee really mean foreign travel is off the table this year?
A weak rupee doesn’t rule out foreign travel
With the right destination choices and careful planning, Indians can still travel overseas in 2026 without straining their budgets. The key is to opt for countries where the cost of living remains lower than that of India’s major metro cities.
Affordable accommodation, inexpensive local food and reliable public transport help keep daily expenses in check, even when exchange rates are unfavourable.
Several destinations across Southeast Asia, Central Asia, South America and parts of Eastern Europe continue to offer strong value despite currency fluctuations. Many of these countries also enjoy good flight connectivity from India, visa-friendly entry norms and a wide range of experiences—from beaches and heritage towns to mountains and cultural hubs.
So where can Indians still travel abroad without burning a hole in their pocket in 2026? Here are some of the most affordable international destinations to consider. (Rupee estimates as of 11 am, February 4, 2026)
Image: Canva
1. Vietnam
Currency: Vietnamese Dong (VND)
Exchange rate: Rs 1 ≈ 287 VND
Vietnam continues to rank among the most affordable international destinations for Indian travellers in 2026. Daily expenses remain low across major cities such as Hanoi, Ho Chi Minh City and Da Nang, where budget hotels, hostels and homestays are widely available. Local transport—including buses, trains and app-based taxis—is inexpensive, while street food meals often cost significantly less than in Indian metro cities. From historic old quarters and war museums to beaches and hill towns, Vietnam offers diverse experiences without putting pressure on travel budgets.
Image: Canva
2. Laos
Currency: Lao Kip (LAK)
Exchange rate: Rs 1 ≈ 237.68 LAK
Often overlooked by mainstream tourists, Laos offers a slower pace of travel and some of the lowest daily costs in Southeast Asia. Popular towns such as Luang Prabang and Vang Vieng are known for budget-friendly guesthouses, affordable cafés and scenic river and mountain landscapes. Entry fees to attractions are modest, and local transport remains inexpensive, making Laos an attractive option for Indian travellers seeking a peaceful, cost-effective international getaway.
Image: Canva
3. Indonesia (Bali and Lombok)
Currency: Indonesian Rupiah (IDR)
Exchange rate: Rs 1 ≈ 185.40 IDR
Indonesia remains a favourite among Indian tourists due to its strong value-for-money appeal. In Bali, travellers can find a wide range of budget hotels, homestays and guesthouses, while local eateries and street food help keep food expenses under control. Scooter rentals and public transport further reduce daily costs. For those looking to cut expenses further, nearby Lombok offers quieter beaches, fewer crowds and even lower accommodation prices, making it a more economical alternative to Bali.
Image: Canva
4. Uzbekistan
Currency: Uzbek Som (UZS)
Exchange rate: Rs 1 ≈ 134.73 UZS
Uzbekistan stands out as one of Central Asia’s most budget-friendly destinations, especially for culture-focused travellers. Historic Silk Road cities such as Samarkand, Bukhara and Tashkent offer affordable hotels, low-cost local transport and modestly priced entry tickets to monuments and museums. Food is inexpensive, portion sizes are generous, and intercity travel by train remains reasonably priced, keeping overall travel costs manageable despite long-haul flights.
Image: Canva
5. Paraguay
Currency: Paraguayan Guarani (PYG)
Exchange rate: Rs 1 ≈ 73 PYG
Paraguay is among South America’s most affordable countries and offers strong value for travellers willing to explore beyond traditional tourist routes. Accommodation, local food and public transport are significantly cheaper compared to neighbouring destinations such as Brazil or Argentina. Cities like Asunción provide access to cultural landmarks, markets and riverside areas at low costs, making Paraguay a viable long-haul option for budget-conscious Indian travellers in 2026.
Travel smart amid currency uncertainty
For Indian travellers willing to plan ahead, avoid peak travel seasons and rely on local transport and budget accommodation, international travel remains achievable in 2026 despite currency volatility.
As global economic and geopolitical uncertainties continue to influence exchange rates, destination choice—rather than the rupee alone—can play a decisive role in keeping travel budgets under control.
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