Mumbai: This year if you plan to go on an international trip, get ready to shell out more, thanks to the depreciating value of Indian currency. For every dollar, you have to shell out about Rs68, according to Bloomberg data. Till last year, it was Rs64 a dollar. If you are yet to decide where to go this year for vacation, we help you drop the pin on the map where you can get the most out of Indian rupee.
Try out Turkey
There are at least nine countries where their currencies have depreciated more than the Indian rupee against dollar. Turkey, Indonesia, Russia, Brazil and Ethiopia are on the list. “You should compare the currency depreciation against the rupee. The Indian travellers will be converting rupee into the currency of the country they are travelling to. You can get better value at places where the currency has depreciated faster than the rupee," said Sharat Dhall, chief operating officer (business-to-consumer), Yatra.com. “Turkey is big on outbound travel. There is a range of things to do there — good food and great places to visit," said Balu Ramachandran, head—air and distribution, Cleartrip.com. The Turkish Lira has depreciated almost 11% against Indian rupee.
South-East Asia works well
There are multiple countries where Indian rupee can give you greater value. “Vietnam, Cambodia, Indonesia, SriLanka and Nepal are attractive," said Dhall. Though there are multiple countries that are cheapest or give more values against Indian rupee, you have to look at it in terms of relevance.
“Countries such as Bolivia, Paraguay, Zimbabwe and Pakistan although cheaper are not relevant from a tourism point for view. However, countries such as Cambodia and Vietnam are more relevant," said Ramachandran.
Trick to pick right
Analysts predict that rupee is going to decline for the next three to six months. “The outlook for rupee is 68.50, looking at crude oil prices that triggers inflation. We see pressure on rupee for three-six months," said Kishore Narne, associate director, commodity and currency, Motilal Oswal Securities Ltd.
If you are looking to beat India rupee and get more out of it, look for countries where the currency has depreciated more. You can also consider countries where the cost of flight tickets has fallen owing to increase in flight frequency.
“We have seen a spurt in travel to Japan from India because airfares have become more affordable owing to addition of low-cost carriers. Also, the Japanese yen has depreciated against the Indian rupee. It was 1.53 last year, this year it is 1.63 for a rupee," said Narne.
However, if you have booked your tickets to say the US, you will have to shell out more. “There is a 5-6% appreciation, which doesn’t change the outcome for someone who has already planned to go overseas.
But if you have time to plan, looking at the outlook for the rupee, given what is happening owing to oil, you can consider going to places closer to India if you want to get more out of your currency," said Ramachandran.