Reacting to sharp increase in US Dollar value touching Rs 64 to a dollar, M. Rafeeque Ahmed,President, Federation of Indian Export Organisations (FIEO) Tuesday said that this is temporary phase and Rupee will strengthen looking at bright prospects of exports in coming months.
Ahmed said that improvement in overall economic parameters in US and modest growth in Europe in last quarter (after four consecutive contraction) would help India's exports which may clock by 20 percent from October onwards.
The Indian rupee Tuesday recovered partially from the record low of 64 against a dollar it touched and stood at 63.25 after an apparent intervention by the Reserve Bank of India (RBI).
The partially-convertible rupee touched a new low of 64.11 in pre-noon trade at the inter-bank currency market here down 1.6 percent, surpassing the previous record low of 63.30 Monday. Later rupee recovered and closed at 63.25 against a dollar at 5.00 p.m down 0.2 percent from Monday's close of 63.13.
President, FIEO said that Rupee depreciation has imparted some competitiveness to exports which are visible in order booking position where we are seeing over 20 percent growth across many sectors.
President FIEO said that exporters should use Rupee depreciation to augment exports by cutting down their prices to out price their competitors.
"The country will easily cross the exports targets for the current fiscal and trade deficit in the current year will be much less as compared to 2012-13," Ahmed added.