Rupee slide, overseas inflation key when planning foreign education

Factoring in only domestic inflation could lead to a shortfall

The rupee recently crossed the 90 level against the United States (US) dollar, reinforcing a long-term trend of gradual depreciation. For Indians with future spending goals denominated in foreign currencies — such as children’s overseas education, international travel or medical treatment abroad — this weakening can have a significant impact. Investors must account for currency depreciation in their financial plans and use instruments that can cushion this erosion in purchasing power.

 

Key drivers 

A widening trade deficit has been one of the principal forces weakening the Indian rupee. “Record gold imports have contributed in a big way,” says Sachin Jain,