- Why the rupee hit a record low — and the near-term drivers
- Price impact: fuel, phones, gold, tuition, SaaS, and travel
- Will EMIs change? What actually moves your EMI
- USD spends: cards vs forex cards vs prepaid-in-INR
- Quick hedging playbook (1–3 month horizon)
- Travel checklist: lock rates smartly, avoid hidden fees
The short
- Imports get pricier: A weaker rupee lifts landed costs for fuel, electronics, gold, and USD-priced services (tuition, subscriptions). Pass-through varies by sector.
- EMIs: Your existing EMI doesn’t change with USD/INR. It moves if your loan’s rate resets (repo/MCLR-linked). Currency affects EMIs only indirectly via inflation/policy.
- USD spends: Foreign transactions often carry bank/processor markups. Avoid dynamic currency conversion (DCC) — pay in local currency.
- LRS: For large USD bills (tuition, medical), India’s Liberalised Remittance Scheme allows up to $250,000 per person per FY (check your bank’s TCS grid).
Why the rupee fell — the near-term mix
Global risk-off, tariff headlines, and importer hedging added pressure — pushing USD/INR through prior highs despite intermittent smoothing by authorities. Watch US data, global dollar strength, and RBI signalling for cues.
What gets more expensive — and what you can do now
| Category | How FX hits | What to do now |
|---|---|---|
| Fuel (petrol/diesel), ATF | USD-priced crude → refinery cost → pump prices (with lags) | Advance refill before hikes; budget highway trips with buffer |
| Electronics (phones, laptops) | High import content; vendors may reprice | Time purchases; look for INR-locked festival deals; compare prior MRP |
| Gold jewellery | International gold × USD/INR → INR gold price | Buy in tranches; watch making charges; avoid panic buys |
| Overseas tuition/fees | Billed in USD; INR cost rises with each ₹/USD move | Prepay a semester/months via wire under LRS; build 3–5% buffer |
| SaaS subscriptions | USD billing + card FX markup | Switch to INR-billed plans where offered; use low-forex/forex card |
| International travel | Airfares/hotels partly USD-linked | Prepay in INR where possible; lock a portion on a forex card |
USD spends: methods & practical tips
Credit/debit cards abroad
- Expect a bank “forex markup” and taxes; avoid DCC at POS/ATMs.
- Tip: Prefer cards marketed as low/zero-forex markup for residual swipes.
Forex cards (prepaid)
- Lock a rate on load; issuer fees vary.
- Tip: Load in 2–3 tranches; top up on dips instead of one-shot loads.
Quick hedging playbook (1–3 months)
- Define exposure: Tally all USD payments due (tuition, bookings, SaaS, cash).
- Lock essentials: Prepay airfares/hotels in INR where possible. For must-pay USD bills, load a forex card now for 50–70% of needs.
- Cut fees: Use a low-forex/zero-forex card for the rest; compare ATM fee schedules if you need cash.
- LRS/TCS hygiene: For larger wires, confirm your bank’s current TCS matrix and documents before remitting.
- Budget a buffer: Plan at a round number (e.g., ₹90/USD) to avoid shortfalls if volatility persists.
Note This is a cost-control playbook, not investment advice.
Will my EMIs change?
Not directly. EMIs change if your loan’s rate resets (repo/MCLR-linked). Currency weakness can influence inflation and rate expectations — that’s an indirect channel and depends on RBI policy, not USD/INR alone.
Travel checklist (practical)
- Prepay hotels in INR (portal deals) to avoid FX swings.
- Load a forex card for cash-like spends; carry a backup low-forex credit card.
- ATM: fewer but larger withdrawals to limit per-withdrawal fees.
- Always decline DCC at POS/ATMs; choose local currency.