Rupee Hits Record Lows Close to 89 Raises Costs for Overseas Education and Travel

Rupee at Record Low Near 89: How the Currency Slide Is Rewriting Study-Abroad and Travel Budgets

The rupee at record low near the 89-per-dollar mark is no longer just an economic headline—it has become a lived reality inside Indian households. Families planning to send children abroad or budgeting for international vacations are now recalculating every expense as the Indian currency continues to weaken against the U.S. dollar. What once felt like a predictable financial plan is suddenly being reshaped by exchange-rate volatility, larger loan requirements and rising travel and living costs abroad.

On November 25, the rupee traded at ₹89.26 against the U.S. dollar at 3 p.m. IST, marginally stronger during the session but still hovering near its all-time low. Just days earlier, on November 21, the currency touched a record low of ₹89.61, driven by elevated dollar demand and unfavourable global cues.

While economists and policymakers track charts and forecasts, the ripple effect of the rupee at record low is most visible among students preparing to study overseas and families planning international vacations.

Why the Rupee Is Under Sustained Pressure

Multiple forces—global and domestic—are influencing this persistent weakness. According to the Reserve Bank of India, elevated demand for the dollar remains a primary contributor. A favourable shift could come only if the long-discussed India–US trade agreement moves closer to resolution.

Currency experts say the decline is being fuelled by a combination of factors: higher import bills, worries about imported inflation, and increased dollar hoarding by businesses and investors.

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

The U.S. Federal Reserve’s monetary policy stance is compounding the pressure. Higher U.S. interest rates typically pull global capital into dollar assets, weakening emerging market currencies—including the rupee. Market sentiment now hinges on the likelihood of a rate cut, with Polymarket showing an 81% probability of another cut in the next meeting.

“The probability of another rate cut has given investors fresh confidence,” said Edul Patel, CEO of Mudrex, though the relief has yet to show meaningful impact on the rupee.

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Falling Rupee Is Inflating Overseas Education Budgets

Perhaps the clearest example of the impact of the rupee at record low is visible in the budgets of students heading abroad. The difference of just a few rupees translates into substantial increases in annual expenses.

“A year ago, when the rupee was around ₹83, a $40,000 tuition fee cost approximately ₹33 lakh. Today, with the rupee near 89, the same fee crosses ₹36 lakh, even though the university hasn’t raised its prices,” explained Pavan Kavad, Managing Director, Prithvi Exchange (India) Ltd.

Accommodation, groceries, public transport, and insurance have all become more expensive in countries such as the U.S., the UK, and Canada. Students in these destinations are spending an additional ₹8,000 to ₹18,000 per month, directly due to currency depreciation.

Even everyday essentials reflect the change. A £2 bus ride or a $10 meal is now significantly costlier in rupee terms, and students are feeling the pinch. source : Moneycontrol

Families are adapting in various ways:

• Increasing education loan amounts under the Liberalised Remittance Scheme (LRS)

• Seeking scholarships more aggressively

• Delaying admissions to the next intake

• Switching to lower-cost destinations such as Germany, Ireland, Poland or Malaysia

• Choosing shorter or more affordable programmes

“Students are recalibrating choices—they are asking more questions about tuition, part-time work opportunities, and destinations where the rupee stretches further,” Kavad added.

Foreign Travel Plans Are Being Rewritten Too

The tourism sector is witnessing similar shifts. With the rupee at record low, family vacations that once seemed budget-friendly now require top-ups of tens of thousands of rupees.

“A Europe trip that earlier cost ₹2.2 lakh per person now crosses ₹2.6 lakh, purely because hotels, internal travel, and everyday expenses have become more expensive,” noted Kavad.

The impact is visible in changing travel patterns:

• More travellers are choosing countries where the rupee is stronger—Thailand, Vietnam, Bali, Malaysia, Oman

• Families are opting for shorter stays, group tours, or off-season travel

• Bookings are happening much earlier to hedge against further rupee depreciation

Travel agents report rising interest in currency-protected travel packages, where part of the expense is locked at a fixed exchange rate.

“Indian travellers are becoming more financially aware—they are tracking exchange rates before booking flights, comparing destinations closely, and even consulting financial advisors,” Kavad said. “Currency awareness is becoming as important as visas or itineraries.”

What the Weak Rupee Means for the Months Ahead

The rupee’s trajectory will depend on upcoming data releases, U.S. monetary policy decisions, the India–US trade talks, and shifts in global risk sentiment. For now, analysts expect the rupee to remain under pressure, making overseas education and international travel costlier in the short term.

For families, the rupee at record low is prompting deeper financial planning—ranging from adjusting remittances to expanding education loans and reconsidering travel budgets. Until the currency stabilises, Indian households will continue to feel the direct impact of each slide in the rupee-dollar equation.

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