Weak dollars effecting steel exports

The initiative taken by RBI has kept the Rupee on hold to some extent, otherwise it would have crossed the 39/- per dollar barrier. Rupee is appreciating due to huge inflow of Dollars by the FII’s in the Indian Stock Market.Due to open market, it has totally become a simple statistics of demand and supply.

However, this is highly effecting the Indian Export Market. Already the Garment Manufacturers are feeling the punch. The steel industry is also facing similar kind of recession.Exports in steel is having a negative growth in the last 6 months. Compared to the first half of the previous fiscal year, the exports have have gone down by 8.5%

RBI is taking all the neccessary measures to control the rising rupee. But if the Rupee keeps appreciating in this similar fashion, it will soon become a boon to importers, whereas the fate of exporters will be in doldrums.

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