Home / Knowledge / News / Higher FII inflows to put pressure on Rupee - FIEO President
Higher FII inflows to put pressure on Rupee - FIEO President
05
Apr '10
Mr A Sakthivel, President, Federation of Indian Export Organisations (FIEO) while commenting on the dollar inflows stated that the FII's March investments in stocks was at a sixmonths high of $4 billion in equity and $2.2 billion in debt markets and although more inflows were anticipated due to the arbitrage opportunities / risk aversion available it has created rupee volatility adversely impacting lean export margins.

The FIEO Chief stated that the last time around in 2007 when we had a bout of rupee appreciation the dollar inflows were around $ 40 billion which resulted in the volatility of the rupee inspite of the RBI's stepping in with MSS operations etc. He reiterated his demand that FII inflows should stay in India for a period of 2 years.

Mr A Sakthivel elaboratedthat considering that the inflation is around 9.89% analysts believe that appreciation in the rupee is more than25%.Traditionally there has been an effort by the RBI to match current account deficits with inflows so as to maintain some parity in the rupee, however, with the quantum of inflows increasing, containing volatility may be difficult. In such circumstances, the competitiveness of the. exports would be eroded severely resulting in the labour loss and closure of manyunits.

The RBI in its wisdom towards addressing the larger issues of financial inclusion and employment generation may consider pegging the currency at Rs 47.50 to a US $ for exports only.

Federation of Indian Export Organisations


Must ReadView All

Courtesy: The White House

Textiles | On 21st May 2018

China, US put trade war on hold

Following weeks of uncertainty over imposition and counter-imposition ...

Equate posts best Q12018 results since inception

Textiles | On 21st May 2018

Equate posts best Q12018 results since inception

Equate Group's first quarter results for 2018 are the best since its...

Over 60% retailers already have IoT platforms: IDC

Apparel/Garments | On 21st May 2018

Over 60% retailers already have IoT platforms: IDC

Retail organisations are adopting IoT platforms and more than 60 per...

Interviews View All

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Top executives
Textile & apparel bodies

The decision to reduce GST on MMF yarn to 12% is transformational

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search