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

Textiles | On 21st Aug 2017

Turkish apparel exports fall 6.11% in H1 2017

Apparel exports from Turkey declined by 6.11 per cent in the first...

Textiles | On 21st Aug 2017

Liaoning Bora picks LyondellBasell’s PP & PE tech

Liaoning Bora Petrochemical Co., Ltd has selected LyondellBasell’s...

Courtesy: Top Value Fabrics

Textiles | On 21st Aug 2017

Top Value Fabrics brings in latex performance textiles

Top Value Fabrics has expanded its textiles for latex printing with a ...

Interviews View All

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

August 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
67.7%
No
16.1%
Skip
16.1%

Total Votes: 31

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
45.2%
No
35.5%
Skip
19.4%

Total Votes: 31

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.9%
No
6.5%
Skip
9.7%

Total Votes: 31

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
61.3%
No
9.7%
Skip
29.0%

Total Votes: 31


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search