Indias exporters could face challenges with continued appreciation of the rupee, Ajay Sahai
The Dollar Business The industry body FIEO forecast challenges for the exporters if the rupee continued appreciating in the future. Global trade is expected to grow at 2.4% in 2017, and there is likelihood of extreme instability in currencies. Though the rupee has gained against the dollar, and since competing currencies of other countries could depreciate further, rupee’s appreciation could hurt India’s competitiveness in its labour intensive business units especially sectors such as agro-products industries, handloom, leather, textiles and marine products. The government should support these sectors based on their forex returns so that those companies handling large imports, which will be benefitted with the appreciation are provided less support than those having little or no support. Speaking at a press meet ...
Don't bet on a rupee devaluation
Steven Philip Warner | August 2016 Issue | The Dollar Business There is no overnight waking up to a shock like the one that London witnessed when UK bowed out of EU. Stock traders on Paternoster Square, bankers on Threadneedle Street, high-end shoppers at the Royal Exchange, pub-hoppers from Wapping to Hampstead and beyond – all of them are still finding it difficult to pause conversations on the tomorrow for London, England and Europe. And for the pound. So what started as a promise-triggered campaign by UK’s erstwhile PM to stay in a flawed Union, ended with Russia smiling quietly, US scratching its head for having lost its closest ally in a critical bloc and much of South Asia – including India ...
Rupee devaluation may not boost exports: RBI Governor
Sharath Chowdary Devaluation of the rupee may not boost exports from India. But in all likelihood, it will have an inflationary impact offsetting any benefit to the country’s economy. The current value of rupee is pretty reasonable, the Reserve Bank of India Governor Raghuram Rajan said. This was in reply to a question posed by The Dollar Business Bureau, if there was any need to devaluate the rupee to increase exports from the country, given the current scenario of global economic slowdown. Detailing the side effects of rupee devaluation, he said, “Currency is a complicated animal. Inflation will pick up in the country due to devaluation. Cheaper prices may allow exporting more but it also makes imports costlier. We need to pay ...
Indian economy better than many others, says RBI governor
The Dollar Business Bureau India’s macroeconomic factors are “under control” and the country’s economy is “better” than many others, Reserve Bank of India Governor Raghuram Rajan said on Monday. “Growth is stronger, the current account deficit has narrowed significantly, the fiscal deficit is on a consolidation path, and inflation has halved,” Rajan said at an Indian Bank Association summit in Mumbai. The statement comes amid continuous fall in the financial market across the globe and its impact on the rupee value. Seeking to allay investors’ concern due to falling stock exchange indices in the past four days, the RBI chief said that the country has the buffer of $380 billion forex reserve which can be used in case of emergency. Citing improvement ...
