New Delhi, Aug. 12 -- India's foreign exchange market is undergoing a significant shift, with Tier 2 and Tier 3 cities now accounting for 53 per cent of forex demand, while younger consumers are accelerating digital adoption and travellers are increasingly opting for destination-specific currencies, according to a report by Thomas Cook India.

Based on transaction data for April 2025 to March 2026, the report highlighted an increasingly diversified forex market driven by rising outbound travel, overseas education, corporate mobility and changing payment preferences. Tier 1 cities, including metros, account for 47 per cent of forex demand, while Tier 2 and Tier 3 cities contribute 41 per cent and 12 per cent, respectively.

Leisure travel ...