After nearly a year of torment and loss due to the appreciating rupee against the dollar, the balance seems to have turned in favour of the exporters. Since April 30 the rupee has dipped and has lost value against the dollar by about 3 percent in the last 10 days finally giving some reason to exporters to rejoice.

And it couldn't have come at a better time. May-June is the time when dealers across the world, especially in the US, place orders. With the slide in the rupee, now exporters can quote more competitive prices if orders are finalised at the current rates.

Moreover, the recent currency trend in the last few days has put the Indian exporters at an advantage against the likes of China, Thailand, and the Philippines. For instance the Chinese yuan has appreciated against the dollar by nearly 7 percent in the past couple of months.
This will give the Indian exporters an added advantage and they can quote a better price for their products against their Chinese counterparts.

Exporters need to cash in on the situation. Considering the volatility of the rupee, it will not be surprising if the rupee starts appreciating again. Exporters need to turn this tide in their favour and work towards receiving advance payments for their orders at the present rate and also fix a post-delivery payment based on this rate.

Certainly this is an opportunity we should not miss. As the old proverb goes 'strike while the iron is hot', so let's strike when the rupee is low.

Mr. Bikky Khosla

(Tradeindia Expert)

Tradeindia.com

CEO, Tradeindia.com
New Delhi, India