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How strong rupee could play spoilsport for reviving exports
April 29, 2017
- The rupee’s march towards a 20-month high against the dollar on Wednesday has cast a shadow over the sustenance of a recent rebound in export growth that touched a six-and-a-half-year high in March.
- While the sustained rise in the rupee poses risk of an erosion of India’s export competitiveness, persistent volatility in the movement of the domestic currency, unless managed, could make it difficult for exporters while firming up contracts, according to exporters from a range of sectors like garments, engineering goods and even farm products.
- Typically, the average currency hedging by exporters across key manufacturing sectors is to the the tune of 50%, an exporter said.
