File photo. Photograph:( Reuters )
The rupee weakened by 36 paise to 72.84 against the US dollar Monday.
Rupee depreciation does not benefit exporters, instead, a stable currency is needed for long-term sustainable growth of India's international trade, industry body CII said Monday.
In the present globalised environment, a majority of costs like raw material, shipping charges, warehousing and other related services are denominated in foreign currency or at import parity price, the chamber said in a statement.
Besides, most of the exporters do long-term hedging at the time of booking of orders, while importers press for a reduction in prices citing depreciation of the rupee, it said.
"Hence, it is more of a perception than reality that depreciation of the rupee helps exporters. What is required is a stable range-bound currency which will give stability and certainty for quoting prices and accepting orders in today's competitive global environment," Chairman of CII National Committee on Exports and Imports Sanjay Budhia said.
The rupee weakened by 36 paise to 72.84 against the US dollar Monday even as the RBI announced plans to purchase government bonds worth Rs 36,000 crore to boost liquidity.
The domestic unit rupee had gained 11 paise to close at a one-week high of 72.48 against the US dollar on Friday.
In recent weeks, the rupee has taken a beating amid volatility in global markets and strengthening of the greenback. The central bank has been taking various measures to shore up the rupee.