Weak Indian Rupee Vs US Dollar: How It Makes US Travels Expensive

The Indian rupee (Indian Rupee INR Symbol) has been losing its value in comparison with the US dollar ($). The erosion in Indian rupee’s valuation has both positive and negative impact. For Indian exporters receiving payments in US dollars, it is a good news as they get to make more money — more revenue in Indian rupee on converting USD to INR. In contrast, a weak rupee is bad news for importers who need to make payments in dollars.

This currency exchange dynamic does not just affect businesses. It affects individuals as well. Let’s say you are travelling to the US for vacation or work. You end up spending more in terms of Indian Rupee as the Dollar, the currency you will be spending in the US, has become move valuable. Simply put, when you exchange your rupees to USD, you get less dollars than what you would have got a couple of years ago.

Once you have the dollar in hand, you go to the US. There you make purchases, buy food, pay for hotel, etc. All of it is costing you more in terms of rupees when compared to the time when rupee was stronger than what it is now.


Let’s consider a scenario when you are using a rented car in San Diego or Imperial Beach, California. By accident or bad luck, you lose your car keys.

Now what?

You call a San Diego locksmith, right! And, of course, pay the locksmith in USD.

If you have to pay $50 in total, you have paid about Rs 3,300 at the current exchange rate. A year ago, you might have paid just Rs 3,000. You paid 10% more to the locksmith. Funny part is that the Imperial Beach locksmith was still charging $50 for same amount of work. He didn’t get any more money than what he was charging a year ago, but you spent 10% more.

All of it is because of the forex rates and the fluctuations in the valuation of the two currencies. If it was year 2010, you would have paid the locksmith just Rs 2,250 even at the same rate. Some five years ago, 1 USD was equal to just Rs 45. Today, 1USD is about Rs 65.

With this example of a locksmith service, you get to understand how the weak rupee is making it more expensive to go on a vacation to the United States. What if you want to study in the US? The same situation arises even then. You end up spending  more for your course even if the university hasn’t raised its fees. Someone from India who took the same course in the same university would have paid 10-20% less. That’s a lot of money, right!

Alas, we can do nothing about the rupee-dollar rate. The global economy, and the domestic economies of the two countries determine the forex rate for their countries. So, just live with it. Stay updated with how currency valuations impact our lives on a daily basis.