Exporters Facing Uncertainty Due To Rupee Depreciation, Says Industry Body
Exporters are facing uncertainty due to a continuous depreciation of rupee as they are not able to negotiate properly over prices of goods in the global markets, Federation of Indian Export Organisations said.
With fluctuation in the value of rupee, global buyers are asking for review of contracts, FIEO President Ganesh Kumar Gupta said. “Exporters are facing uncertainty due to this. They are unable to hedge as they do not know where the rupee value would go tomorrow,” Gupta said.
He said only 20 percent exporters make profits due to the depreciation as they don’t indulge in hedging practices and the rest don’t get any benefit. He expressed hope that the rupee would stabilise at 67-68 a dollar in the coming days.
The rupee today weakened further by 23 paise against the dollar to trade at a lifetime low of 70.82 on strong month-end demand for the U.S. currency amid sustained foreign fund outflows.
Confederation of Indian Industry Director General Chandrajit Banerjee said unexpected global events have led to a sharp volatility in the rupee. “While India is getting clubbed with other emerging markets, we are confident that stability will emerge soon as India’s sound fundamentals and strong growth is taken into account.”