Lock in rates early, but avoid last-minute loading
One of the most widely recommended steps is to use forex cards to secure exchange rates ahead of travel. These prepaid instruments allow travellers to load foreign currency at the prevailing rate, protecting them from further rupee depreciation.
“A forex card fixes the exchange rate at the time of loading, so any subsequent weakening does not impact what you spend abroad,” said Gagan Malhotra, Chief Operating Officer at BookMyForex.
However, experts caution against last-minute decisions.
Loading funds in a hurry can expose travellers to unfavourable rates. Instead, they suggest loading a majority of the requirement when rates appear reasonable and topping up closer to departure if needed.
“It’s less about timing the market and more about rate stability and budgeting certainty,” said Vinay Bagri, CEO and co-founder of Niyo.
He added that loading in parts can help average out fluctuations.
Protect your budget from further rupee depreciation
Forex cards become particularly effective in a falling currency environment.
Once loaded, they insulate travellers from further exchange rate movements, ensuring that spending abroad remains predictable.
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In contrast, credit and debit cards apply the prevailing exchange rate at the time of each transaction.
“Even small currency fluctuations can increase overall trip costs when using rupee-denominated cards,” Malhotra said.
Bagri noted that such cards often carry a 2-3.5% forex markup, which can compound the impact of a weakening rupee. While zero-forex markup cards remove this additional fee, they still operate on live exchange rates, leaving users exposed to currency volatility.
Depending on market conditions and spending patterns, travellers could see savings of around 3–5% by locking in rates early, particularly during periods of sharp currency movements.
Use a mix of payment tools, not just one
Even as forex cards offer rate certainty, experts say travellers should avoid relying on a single payment method.
Zero-forex markup credit cards can provide flexibility for unplanned expenses, allowing users to transact at near real-time exchange rates without additional charges. Meanwhile, UPI is emerging as a convenient option for small-value transactions in select international markets, though its global acceptance remains uneven.
Malhotra pointed out that even zero-markup cards typically use network exchange rates, which may be higher than interbank rates available on forex cards. At the same time, many traditional cards continue to levy forex markups, increasing the overall cost of transactions abroad.
Match the tool to the need
The choice of payment instrument, experts say, should depend on how and where travellers plan to spend.
Forex cards are suited for planned expenses and those who prefer to operate within a fixed budget. Credit cards, especially zero-markup variants, offer flexibility for unexpected spending, while cash and UPI can cover smaller, everyday payments.
“We don’t see this as one versus the other—it’s about using the right tool for the right need,” Bagri said.
As currency markets remain volatile, the emphasis for travellers is shifting from predicting exchange rate movements to preparing for them. Locking in rates where possible and maintaining flexibility elsewhere can help reduce uncertainty, and keep overseas spending under control.
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