Foreign Vacations To Get Costlier In December As Rupee Falls To All-Time Low

The last month of 2023 has begun. Celebrated as a holiday season all around the world, December sees many people making vacation plans around the upcoming new year and Christmas time. But if you live in India and are planning to go on a foreign vacation, you would have to likely dig your pocket deeper as our currency, the rupee, has fallen to an all-time low.

When Did The Rupee Hit All-Time Low?

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The Indian rupee on Thursday hit a fresh closing low of 83.39 against the US dollar. The Indian currency had settled at 83.33 per dollar on Wednesday. The previous all-time closing low for the rupee was 83.35 a dollar on November 20, as per the Business Standard report.

Why Is The Rupee Falling?

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The Indian rupee fell to an all-time low on Thursday due to a stronger American currency overseas and rising crude oil prices. As per Mint, the dollar index, which gauges the US dollar's strength against a basket of six currencies, was trading higher by 0.42% at 103.20. November saw Rupee as the worst performer among key Asian peers and posted a downfall of 0.2%.

Also Read: How Rupee Stands Against World's 10 Strongest Currencies

How Does A Falling Rupee Impact Your Finances?

Travelling abroad in the present scenario of a falling rupee can burn a hole in your pocket by costing you a lot more than the previous expected costs. If you are a budget-conscious traveller, you may prefer to plan to have a shorter holiday or, if possible, postpone the plan until rupees appreciate. However, if you have made your bookings well in advance, you may not feel the pinch that much, except for the day-to-day expenses like travelling, food, etc.

What About Other Currencies?

The rupee emerged as the worst-performing currency among its Asian peers during the month of November, being the sole currency to depreciate while other currencies appreciated. As per the Bloomberg report, the South Korean won was the best performer with 4.7% appreciation, followed by the Japanese Yen, which was up 2.7%, the Thai baht, which was up 2.6%, the Chinese renminbi, which was up 2.5%, and the Singapore dollar, which was up 2.5%.

Also Read: Explained: How RBIs Digital Rupee (e?) Is Different From UPI

How Is The Stock Market Performing Amid The Rupee's Downfall?

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At a time when the rupee has fallen to a record low, India's stock market is showing the opposite trend. While Nifty50 has already hit a new all-time high of 20,272 this morning (at the time of writing this report), Sensex is inching towards hitting an all-time high mark of 67,927.23 soon.

Also Read: Anand Mahindra's Tweet On Launch Of India's First UPI ATM Goes Viral

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