The recent rally in rupee vis-a-vis the US dollar has made a section of exporters unhappy, as the strengthening of the local currency makes Indian exports ‘uncompetitive’ in the global marketplace, Confederation of Indian Industry said on Thursday.
The rupee on Thursday gained 39 paise to close at a nearly 10-month high of 59.29 against the US dollar following sustained selling of the American currency by exporters and continued capital inflows, ahead of keenly-waited Lok Sabha poll results to be unveiled on Friday.
"The recent spurt in rupee vis-à-vis the US dollar has caused a lot of hardship to exporters and shall make Indian exports uncompetitive in the global market.
“Hence, rupee appreciation should be immediately checked to avoid a negative impact on India's exports," CII Export-Import Committee Chairman Sanjay Budhia said.
"Indian exporters are already facing lot of constraints like infrastructural bottlenecks, slowing down of world demand, high cost of funds, low technology intensity, scarcity of skilled and semi-skilled manpower, high input costs, high transaction costs and stiff competition from Chinese and other exporters from emerging economies," CII said.
The Reserve Bank on Thursday said it has put in place contingency plans to infuse liquidity into the system to deal with any possible volatility in markets tomorrow in view of the election results.