The sharp appreciation in the rupee value against the dollar has left exporters worried as most of them get exports invoiced in the US currency.
The Federation of Indian Export Organisations has put the blame on foreign funds taking advantage of interest rate differentials between India and other markets for the rise of the rupee.
''The situation has become precarious since foreign funds, taking advantage of the wide interest rate differentials between India, the US and Europe, have invested $340 million in the Indian bond and equity market this month,'' FIEO president M Rafeeque Ahmed said in a statement on Friday.
An FIEO survey found that a majority of exporters invoice their exports in dollars. ''It is this section of the exporting community which is feeling the maximum impact,'' Ahmed said.
The rupee has gained 19 paise to the dollar during just this week.
''This has been a cause of concern to the exporters who are facing stiff international competition and higher transaction costs vis-a-vis other economies of the world,'' he said.
UNI
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