Exporters Ask For RBI Intervention To Contain Rupee Rise

Exporters are now feeling the heat of the appreciating rupee against the US dollar. With the rupee climbing to nine-year high, the exporting community has urged the Reserve Bank of India to intervene and halt the rupee''s rise against the dollar. They also want the RBI to have a mechanism wherein the rupee is allowed to move within a specified range for exporters. The exporting community apprehends that the competitiveness of Indian exports might suffer more, if the rupee were to further strengthen against the dollar in the coming days. Asked what would be the comfort zone on the value of rupee for exporters, Mr Gupta said that anywhere between Rs 43.5 and Rs 44. The exporters are suggesting that a range be fixed around a particular rate (say 3 per cent around Rs 44) and the rupee movement should be restricted within this range for exporters. The rupee touched a new nine-year high on Wednesday (touched intra-day level of Rs 40.87 against the dollar) on the back of investors betting on continued capital inflows and some speculation that the RBI would not check rupee gains in order to tame inflation.