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Started by : Gandhi Rajan, Sr. Associate, ICICI Securities   09 08 2008 22:52:56 +0000
Industry : Investment BankingFunctional Area : Capital Management(Corporate Finance)
Keywords : Rupee Rise Affected
Activity:  26 views;  last activity : 07 06 2010 20:18:09 +0000

The nation's central bank, has a tough job at office -- first to keep inflation under check and then to delicately adress the issue of rupee rise and fall. But when rupee rise was there we were worried about our exports and now when its falling we again have a problem. So how rupee rise is affecting you.

 
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1 2 3
1 Lower Exports
2 India's competitive strength in world trade
3 It would increase local supplies

Lower Exports

idea posted by Gandhi Rajan Sr. Associate, ICICI Securities
Exporters are unable to maintain necessary profit margins if their dollar-linked earnings fall. India's export target of $160 billion may not be met, if rupee rises. A more 'realistic' export target has to be formulated in case there is rise.
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India's competitive strength in world trade

idea posted by Santosh Bhosle Associate, IFCI
If the rupee continues to gain against the dollar, India's competitive strength in world trade (which is already negligible) will weaken. This, in turn, shrinks new job avenues.
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It would increase local supplies

idea posted by Varun Sood Associate, JP MorganChase
Exporters are keener to sell their product/services locally, if possible. This would increase local supplies and lower prices and inflation.
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