Rise in dollar rate worries importers

Ludhiana: The rate of US dollar — which fell a few months ago, and was inching towards touching Rs68 — breached the Rs70 mark and closed at Rs70.73. City importers are in a shock over the situation, and incurring huge losses with every single paisa of increase in the dollar rate. On the other hand, exporters are set to benefit from this rise, though they are of the view that if such a trend continues, it could backfire on them as well in the coming days, since their overseas buyers will start asking for discounts in the rates of their products.
According to garment exporter Harish Kairpal, the finance secretary of Knitwear Club: “On Monday, we witnessed the highest single day fall of rupee, as it fell by almost 113 paisa, after the announcement of scrapping of Article 307 was made by the union government. Otherwise as well, the dollar rate is on the rise since June last week, and as per market reports, the rates is going to touch Rs72 soon. This is a very terrible situation for importers, as the cost of imports has risen sharply, and they are forced to bear the losses. However, it is temporarily a good situation for exporters, but if the bull run continues, it can also hit us back, as our buyers will ask for rate correction.”
Speaking to TOI, Harish Dua, president of Knitwear and Apparel Exporters Organisation, said: “There has been a rise of two rupees in the dollar rate in the past one month. This is a volatile situation for both exporters and importers, and a clear indication of the turbulent times our economy is facing. Exporters and importers are of the common view that the government must take some solid steps to ensure that the rupee is strengthened against the dollar, or should at least remain stable, as a stable rupee is in the best interest of our nation.”