Home / Knowledge / News / Textiles / Rising rupee worries exporters, consider hedging
Rising rupee worries exporters, consider hedging
Oct '09
Textile and apparel exporters are worried over the unfavourable impact; the rising rupee could create against the US dollar, due to which they could consider hedging, to protect themselves from its fluctuations.

Hedging helps in reducing the risk associated with currency fluctuation and is akin to buying an insurance policy. By means of hedging, the exporters insure themselves against any future fluctuations.

The rupee has appreciated considerably against the US dollar in recent weeks and is sending tremors across the exporting fraternity and this has come at a time when the sector was seeing a recovery after witnessing the worst in the last few months.

Margins are the first casualty of an appreciating rupee. Deals are signed months in advance and any appreciation of the rupee first impacts the margins, which can also lead to losses on the orders that are dispatched in that period.

In May 2009, the rupee was trading at nearly 50.49 to the US dollar, on September 28, it further rose to 47.97 and now on October 26 it has further slipped to 46.59, which means it has appreciated by nearly Rs 5 in as many months.

Fibre2fashion spoke to Mr Varghese Mathew, MD, Remya Apparel, who said, “Since buyers will not increase price, we will have to adopt more stringent cost control measures and the rest of the losses will have to be borne by exporters”.

Worried over an adverse impact on export earnings due to rising rupee against the US dollar, several north Indian export companies are mulling hedging against the volatility of the Indian currency.

Fibre2fashion News Desk - India

Must ReadView All

President Donald Trump; Courtesy: White House

Textiles | On 23rd Jan 2017

US textile industry eager to work with President Trump

The US textile industry is eager to work with President Donald Trump...

Textiles | On 23rd Jan 2017

LyondellBasel expands Texas plant ethylene capacity

US based producer of petrochemicals and speciality chemicals...

Textiles | On 23rd Jan 2017

China’s cotton imports down 39% in 2016

China’s total cotton imports declined by 39.1 per cent to ...tons in...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

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 ...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Rupa Sood and Sharan Apparao

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

January 2017

January 2017

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


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search