Travel Forex: 5 Currencies That Cost Indians Most

Indian travellers are buying more Thai baht, UAE dirhams, and Singapore dollars than ever. But where and how you buy foreign currency matters as much as which currency you pick — hidden margins can quietly eat 3–5% of your travel budget.

Here's what happened: Indian outbound travel has surged, and forex demand for Thai baht, UAE dirham, and Singapore dollar has grown sharply — reflecting popular holiday and business corridors beyond the US.. Currency conversion margins vary widely — airport kiosks, bank branches, authorised money changers, and forex cards all offer different effective rates on the same currency.. TCS at 20% now applies on overseas forex spends above ₹7 lakh per person per year under LRS, making large travel budgets more expensive upfront unless planned carefully..

What you should do: Compare the exact rupee-per-unit rate (not just the 'zero commission' claim) across your bank, an FFMC-authorised money changer, and a forex card before buying any foreign currency.. Load a multi-currency forex card at least 48–72 hours before departure through your bank or an RBI-authorised full-fledged money changer to lock in a better rate and avoid airport markups.. Track your total overseas forex spend across the financial year — if you are approaching ₹7 lakh, plan purchases to manage TCS cash flow and ensure you claim it back when filing your ITR..

Pro tip: Carrying 70–80% of your travel money on a forex card and keeping 20% in cash gives you the best of both worlds — better rates on the bulk, and cash for small vendors who don't accept cards.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.