If you are planning a trip abroad, now is the time to lock in your forex. A 12% depreciation in the rupee over the past year means your travel budget stretches significantly less across flights, hotels, tuition, and every daily expense in a foreign country. The earlier you secure your exchange rate, the more you save.
The Indian rupee hit a record intraday low of ₹93.28 against the US dollar on 20 March 2026, falling 0.69% in a single session. Brent crude above $107, nearly $10 billion in foreign investor outflows in March, and the ongoing West Asia conflict drove the fall.
This guide covers what pushed the rupee to 93, how it changes your travel and forex costs, what the RBI is doing about it, and the exact steps to protect your spending power before you fly.
Why Did the Rupee Fall to ₹93?
The immediate trigger is the ongoing conflict in West Asia. As the conflict entered its 21st day, Brent crude rose nearly 40%, from $77.74 on March 2 to $108.65 on March 19. India imports more than 80% of its crude oil, so when oil prices surge, Indian importers rush to buy more dollars, putting intense downward pressure on the rupee.
Foreign investors have withdrawn $9.83 billion from Indian financial markets in March 2026 alone, the highest outflow since October 2024. When foreign portfolio investors pull money out of Indian equities and convert their rupees back to dollars, it creates a second wave of selling pressure on the currency.
The RBI had previously assumed an average exchange rate of 88 per dollar and oil prices at $70 per barrel for the second half of the fiscal year. The actual numbers have blown past both projections, leaving the central bank in a difficult position. The RBI’s foreign exchange reserves declined by $11.68 billion as of 7 March 2026, reflecting the cost of intervening to slow the rupee’s slide. The central bank is actively selling dollars to prevent a disorderly crash, but it is allowing the currency to find a new level rather than defending a fixed rate.
How Does a Weaker Rupee Affect Your Travel Budget?
The math is straightforward. When the rupee was at 83 against the dollar two years ago, a $1,000 trip cost you ₹83,000. At 93, that same trip costs ₹93,000. That is ₹10,000 extra for every $1,000 you spend, a 12% increase without any change in your actual plans.
This impact multiplies across every category of travel spending. Hotel bookings priced in foreign currency, international flight surcharges tied to fuel costs (which are also rising because of the same oil crisis), visa fees, travel insurance, dining, shopping, and even something as small as an airport coffee all become more expensive when converted back to rupees.
For students heading abroad, the effect is even sharper. A semester’s tuition and living expenses denominated in dollars, pounds, or euros can swing by lakhs of rupees over just a few weeks of currency movement.
What the RBI Is Doing?
The rupee is down 3.64% so far this year, making it one of the worst performing currencies among its Asian peers. The Reserve Bank of India has been intervening aggressively in the forex market, selling dollars from its reserves to cushion the fall. Frequent interventions by the central bank have been curbing the fall, but traders say the rupee’s structure remains bearish.
Analysts warn that persistently high energy prices could push the currency beyond 95 per dollar if the West Asia conflict continues without de-escalation. For you as a traveler or forex buyer, the takeaway is simple: do not wait for the rupee to “recover” before booking your forex. The recovery, if it comes, depends on geopolitical events that no one can predict with certainty.
What You Should Do Right Now to Protect Your Money?
Why a forex card works better than your regular debit or credit card abroad.
When you swipe a rupee denominated debit or credit card overseas, your bank converts the transaction at the day’s market rate and adds a foreign transaction markup of 2.5% to 3.5% on top. In a falling rupee environment, you are exposed twice: once to the weaker rate and again to the markup fee. A prepaid forex card eliminates both. The rate is locked at the time of loading, and there is no conversion markup on transactions in the loaded currency. Even zero markup cards do not solve the core problem: the conversion still happens at whatever the market rate is when you swipe, so a bad overnight move hits your budget with no warning. A forex card gives you a fixed number in foreign currency before departure.
Lock your exchange rate today, not at the airport.
Airport kiosks charge markups of 5 to 8% above the interbank rate, which on top of a record low compounds into a brutal loss. BookMyForex lets you lock a rate with just a 2% refundable deposit, fixing your budget regardless of what happens next week.
Load a prepaid forex card before departure.
Once you load money at today’s rate, any further rupee weakness has zero impact on your spending abroad. BookMyForex’s multi currency forex card supports 14 currencies, works globally, and can be managed entirely through the app.
Set a rate alert if your trip is weeks away.
You do not need to convert everything today, but you should know when the rate dips in your favour. Volatile markets always produce brief recovery windows. BookMyForex rate alerts catch those for you.
Carry a 90:10 split between card and cash.
Load 90% on your forex card, keep 10% as physical notes for vendors, such as street food stalls, small taxis, or local markets, where cards are not accepted.
Always decline dynamic currency conversion.
When a merchant abroad offers to charge you in rupees instead of the local currency, say no. Their conversion rate plus fee will always be worse than the rate already locked on your forex card.
Will the Rupee Recover Soon?
Not in the near term. Analysts expect the rupee to remain under pressure while the West Asia conflict lasts, with some warning that persistently high energy prices could push the currency beyond 95 per dollar. The RBI’s reserves stood at $716.81 billion as of the week ending 7 March 2026, down $11.68 billion in a single week from heavy dollar selling to defend the currency. That is significant firepower, but it is being spent at a fast clip.
The smarter approach is not to wait for a recovery but to manage your forex exposure now. Book your currency at live rates, use a forex card to lock in today’s number, and avoid every unnecessary fee between here and your destination. The travelers who get hurt most in a falling rupee environment are the ones who do nothing and convert piecemeal at whatever rate is available on the day.
About the Author
Amrita Pritam is the Head of PR and Marketing at BookMyForex and a fintech communications leader with over 15 years of experience. She closely tracks cross-border payments and regulatory developments impacting Indian travellers and students.
