The rupee falls against the dollar, worries parents

The fall of the rupee against the US dollar will pinch Indian parents and their wards studying and aspiring to study in this country, experts and parents have said.

They also said that students can look to other countries to further their education as currencies the rupee appreciates.

The rupee has depreciated against the dollar lately and hit an all-time low of 80.05 against the dollar, worrying parents whose wards are studying in the United States as well as aspiring US college degrees.

The reason? Parents have to pay more rupees to buy a dollar, and their students studying in the United States have to tighten their belts.

“Our daughter tightened her spending while studying in the US as we were buying dollars and sending her. retirement.

“The main reasons for the weakening of the Indian rupee against the US dollar are global factors which include the Russian-Ukrainian war, rising crude oil prices, tight global liquidity and large FII outflows” , said Arun Kumar, head of research at FundsIndia.

The impact of the appreciation of the dollar against the rupee is: imports, foreign travel, education in the United States and others which become more expensive while exporters can laugh until their banks.

While students may look for other destinations for their studies, there are problems finding employment in these countries unlike in the United States.

It’s not just parents whose wards are studying in the United States who are worried, but also parents of children who have taken up jobs and are waiting for a proper visa to continue staying there.

“My daughter has finished school and started some sort of on-the-job training. She has taken out a dollar student loan and is paying it back. The concern now is, if she doesn’t get the required visa to stay in the United States, she has to come back. Then the repayment of the loan will be a problem,” said V. Rajagopalan, a private sector employee at IANS.

Indian students who have completed their studies in the United States and found employment there are happy now that the dollars they send home earn more rupees.

Financial experts believe that the temporary decline of the rupee should not completely curb students’ study abroad plans.

It is also important to note that students plan their study abroad activities over several years. It’s a well-considered decision and it’s unlikely to change soon.

“While the fall of the rupee is an unfortunate development, the fluctuation in the value of currencies is the natural result of floating exchange rates, which is true for most major economies,” said Sanjay Laul, CEO and Founder of M Square Media, a global group. international education platform and service provider, notes.

“This should not be seen as a permanent situation and therefore students should avoid making permanent decisions about a very important life event like education,” Laul added.

According to him, despite the expected increase in international education spending in the United States, the country remains a very attractive international education destination due to the many advantages for students, one of which is the quality of education. that they will receive.

While the depreciation of the rupee makes overseas travel expensive, it seems that pent-up demand is there in the market.

“The movement of the rupee is not a new phenomenon, and despite the depreciation against the US dollar, travel is clearly non-negotiable for Indians – all the more so with strong pent-up demand this year. Rupee has actually seen appreciation against Euro and Pound,” Rajeev Kale, President and Country Head, Holidays, MICE, Visa – Thomas Cook (India) Ltd told IANS.

“After more than two years of restrictions, pent-up demand is driving the desire to travel and despite the appreciation of the dollar, nothing seems to be stopping the Indian traveler,” Daniel D’Souza, President and Country Head – Holidays, told IANS. , SOTC Travel.

Indians are smart travellers, and managing their travel budget involves a simple readjustment: reduce spending on shopping and dining in favor of must-see experiences/tours.

Additionally, customers are also open to switching destinations to those that are easier on the wallet, including Vietnam, Indonesia and Cambodia, Kale added.

D’Souza said there is a clear increase for our closer to home and easy visa destinations like Thailand, Singapore, Bali, United Arab Emirates; also island destinations like the Maldives and Mauritius – with demand up 30-35% month-on-month.

“Indians being value seekers par excellence, our internal data reveals that even though customers want to take their long-awaited vacations, they are opting for cost-cutting options to minimize the impact due to the appreciation of the dollar. “, D’Souza added.

For example, customers choose apartment stays and all-inclusive travel packages to save on extra expenses; they can also cut spending on shopping or eating out, D’Souza said.

Rupee fluctuations are also driving demand for India vacations and value options like domestic cruises that offer all-inclusive and therefore easy-on-the-wallet prices.

According to Kale, higher demand is seen for places like Kashmir, Leh-Ladakh, Goa, Kerala, Pondicherry, Coorg, Ooty and Munnar.”

(Venkatachari Jagannathan can be reached at [email protected])

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