The rupee is expected to settle in the range of 52-54 to the dollar by the end of the current fiscal, credit rating agency CARE has said in a report.
This could, other things remaining constant, turn out a positive for export-oriented industries such as Information technology, textiles, pharmaceuticals, and gems and jewellery, it further said.
On the other hand, metals, minerals and chemicals are expected to be under some pressure and the extent of hedging will determine final net loss on account of rupee depreciation.
Between August and December 2011, the rupee has depreciated by 21% to the greenack. This erosion in its value has caused much concern among industry groups as imports have become expensive, thereby amplifying costs of production and operation, and ultimately profitability.
Given that India is a net importer with a sizable trade deficit, the net impact has to be negative, the report said.
