New Delhi, May 4 -- For many Indian households, the rupee hitting a record low of 94.85 to a US dollar might feel like a distant headline that has little to do with their finances. Especially when no child studies abroad, no holiday is booked overseas, and no money sits in any international fund. It is easy to assume households are insulated from the volatility of the foreign exchange market.

However, the reality of a globalized economy is that the dollar is woven into the daily life of an Indian household, even with no direct spending in dollars. Right from the chemicals in a toothpaste to the cost of a weekend getaway to Goa. A depreciating rupee has a quiet impact in eroding purchasing power and driving up the cost of living through v...