Rupee depreciation affecting negotiations by exporters: FIEO

Exporters are facing uncertainty due to a continuous depreciation of the domestic currency as they are not able to negotiate properly prices of goods in the global markets, FIEO today said.

Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta said that with fluctuation in rupee value, global buyers start asking for a review of contracts.

"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 added that only 20 percent exporters make profits due to the depreciation as they do not indulge in hedging practices and 80 percent do not get any benefit.

He expressed hope that the rupee would stabilize at 67-68 in the coming days.

Continuing its free-fall, the rupee today weakened by another 23 paise against the dollar to trade at a lifetime low of 70.82 on strong month-end demand for the US currency amid sustained foreign fund outflows.

CII Director General Chandrajit Banerjee has recently stated that 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," he has said.

In 2017-18, exports grew by about 10 percent to USD 303 billion.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)