It was a terrible Friday for many Indians, especially those with heavy exposure in stock markets. The BSE Sensex plunged nearly 1,100 points in morning trade, following news that the UK has voted in favour for Brexit.
The selloff in the Sensex, the worst in 10 months, wiped out lakhs of crores in investors' wealth. While domestic investors are staring at days of volatility ahead, for many Indians, especially tourists, Britain's exit from the European Union is good news.
That's because of the sharp depreciation in the pound will make travel costs much cheaper.
The pound plunged against major currencies after Britain voted to exit the European Union.
The pound fell to its lowest level against the dollar in three decades, slumping below $1.35. Against the rupee, the pound also fell sharply. A pound fetched 90.50 rupees today against 100.11 on Thursday.
This means that earlier if you had to pay Rs 100 for a UK pound now you will have to pay only Rs 90. So if you keep your holiday budget the same, you will have more money to spend if you are traveling to UK.
Experts believe that if pound continues its downward slide, more and more people are likely to travel to the UK. With the pound dropping, there is a possibility that we will see an increased number of travellers from India to the UK, MakeMyTrip said in a statement
But "the development is new and is still to unfold," the travel portal added.
The pound's performance against other global currencies is likely to dictate the trend of the UK currency against the rupee, say experts.
Hariprasad M P, senior vice president and head treasury with Centrum Direct said, if pound continues to depreciate against dollar, it is likely that it will fall against rupee.
French banking major Societe Generale expects pound to fall further against US dollar. It sees the pound eventually falling to $1.20-1.25 against the dollar.
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