As long as your entire financial life is domestic, exchange rates just don’t matter. You earn in rupees, you spend in rupees, and your investments are also priced in rupees.

But the moment you plan for something outside India, the exchange rate can act as a villain, too.

Consider education. 

Around 2013, when the dollar was near ₹60, a US master’s program costing $70,000 per year required roughly ₹42 lakh. Today, with the dollar closer to ₹90, the same tuition costs around ₹63 lakh. That increase is not only because universities raised fees, but rather a significant part of it comes from the rupee weakening over time.

The same applies to healthcare abroad, international relocation, or even extended travel. 

A Europe trip that cost ₹5 lakh ten years ago can now easily cost ₹8 to 9 lakh once you factor in currency movement along with higher local prices.

What this shows is really, really simple. Even if your portfolio has grown steadily in rupee terms, the purchasing power of that wealth outside India can shift meaningfully over time because of exchange rates.