AFP Photo
AFP Photo

Dollar appreciation: pay more for travel and study abroad

The Indian rupee fell to an all-time low of 65.56 against the dollar on 22 August

It’s not just onions that are bringing tears to our eyes, a depreciating rupee is adding another wrinkle to the already lined forehead. Here’s how a depreciating rupee impacts you, the Indian consumer: If you want to buy a book from Amazon (the world’s largest online retail store based in the US) for $100, a year back it would have cost you 5,526 when one dollar cost 55.26. Today, the same book will cost Rs6,335. In simple words, when the rupee depreciates, you pay more for imported goods, even though the cost of the product (in a foreign currency) that you wish to buy remains the same. The Indian rupee fell to an all-time low of 65.56 against the dollar on 22 August, a dip of 16.12% over last year and 30.34% over two years ago.

Of course, those planning to travel or study abroad will suffer the most. Your travel plans have become costlier; air tickets, that Swissrail pass you always wanted to take for your trip to the country, or that liquor bottle you wanted to pick up from a duty-free shop at the airport on your way back; everything that you wanted from foreign shores, has become expensive. If you wish to study abroad, there again you will need to shell out more rupees.

Mint Money has put together a list of items that we think you’d most likely buy abroad. You could have either ordered them online, or you bought on your foreign trips. But here’s a snapshot at how much your wallet gets stretched every time you reach out for US dollars or British pounds.

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