Currency exchange rate fluctuations are a common phenomenon in modern commerce, which can significantly impact monetary obligations in cross-border commercial transactions. Particularly, when a currency exchange rate fluctuates in a specific direction, it can negatively impact either the expenditure incurred by a party in the performance of a contractual obligation, or the quantum of money to be received by a party via the other party’s performance of a monetary obligation. If such loss is incurred following a breach of contract, a claim for damages may be set up to recover it, and under the Indian law of damages, such a claim would have to satisfy the criteria of causation, remoteness and mitigation in order to succeed. This paper analyses whether Indian law permits the recovery of currency loss, whether claimed as damages or as sums due under contractual performance. From the analysis, I conclude that currency loss can be recovered in both forms of claims, but find certain shortcomings in the existing position of Indian law.