Don’t miss the latest developments in business and finance.

Exporters see short-term gain in rupee slide but buyers may spoil party

Image
Press Trust of India New Delhi
Last Updated : Aug 16 2018 | 6:35 PM IST

Exporters today said the depreciating rupee may be beneficial for certain segments in the short term but global buyers may start asking for discounts if the unit would stay near the 70 mark.

The rupee today settled below the 70-mark for the first time in history on strong demand for the US dollar amid ongoing Turkish crisis.

Indian Silk Export Promotion Council Chairman Satish Gupta said most of the export bills are made in dollar terms and such exporters will benefit from the conversion in rupee.

However, buyers are very clever, he said.

"Though the buyers have so far not started asking for benefit of currency fluctuation to be parted with them in the form discount but it is likely that the buyer will start asking for discount while realising payment if the dollar stagnate around Rs 70," he said.

CII Director General Chandrajit Banerjee said unexpected global events have led to 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."

Also Read

First Published: Aug 16 2018 | 6:35 PM IST

Next Story