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To the complaints raised by the exporters over the adverse impact of increasing value of the rupee against the dollar, the Central Government said that the rising value of the rupee signifies economic strength and it’s unable to do much as the unit rose and dipped in a range.
On being asked whether the Reserve Bank of India (RBI) or the government would step in to take actions in firming rupee, Finance Secretary Ashok Chawla responded, “As long as the movement is not volatile and takes place based on fundamentals within a sort of range and moves two ways, there is not much that one can do about it”. He informed that an appreciation in rupee represents firm fundamentals of Indian economy and flows of capital into the nation.
The rupee has experienced about 10% rise since the month of March this year causing an adverse effect on exporters, who are witnessing slackening demand overseas.
A. Sakthivel, President of Federation of Indian Export Organisations, told, “The appreciating rupee will have negative effect on exporters, who are already facing lack of orders”.
Habib Hussain, Chairman of Council for Leather Exports, said “Appreciating rupee is a big worry ... we were getting help from strong dollar”.
On Thursday, the rupee touched the one-year high mark rising about 46.35 against the dollar which stood at 46.67 on Wednesday. The Hindu
October 9, 2009
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