The Indian currency may lose further ground and dollar is likely to touch Rs 50 in the next two months in the wake of global financial crisis, say exporters and economists. With foreign institutional investors (FIIs) pulling out of the equity markets in the emerging economies, rupee touched a six-year low of 48.47 against dollar on Wednesday.
If the prevailing sentiment for withdrawal of portfolio funds continues and RBI does not intervene, the dollar can touch Rs 50 in the next 2-3 months, ICRIER Director Rajive Kumar said.The FIIs have net sold $ 120 million from India in the last three months with the global equity markets receiving a thrashing after collapse of several banks in the US and Europe.With erosion of over 20 per cent rupee value since April this year, exporters are laughing their way to bank on increased realisations, though some of them got trapped in the exotic derivative contracts of the previous year.
While they want stability in the foreign exchange market, exporters seem to nurse a desire of the rupee touching 50.On the back of windfall resulting from currency depreciation, India''s exports surged by 35.1 per cent between April and August this fiscal.However, import increase of 37.7 per cent has left a big trade gap of $ 49 billion in the five months of the current fiscal. The trade gap could exert further pressure on the overall current account situation of the country.
If the prevailing sentiment for withdrawal of portfolio funds continues and RBI does not intervene, the dollar can touch Rs 50 in the next 2-3 months, ICRIER Director Rajive Kumar said.The FIIs have net sold $ 120 million from India in the last three months with the global equity markets receiving a thrashing after collapse of several banks in the US and Europe.With erosion of over 20 per cent rupee value since April this year, exporters are laughing their way to bank on increased realisations, though some of them got trapped in the exotic derivative contracts of the previous year.
While they want stability in the foreign exchange market, exporters seem to nurse a desire of the rupee touching 50.On the back of windfall resulting from currency depreciation, India''s exports surged by 35.1 per cent between April and August this fiscal.However, import increase of 37.7 per cent has left a big trade gap of $ 49 billion in the five months of the current fiscal. The trade gap could exert further pressure on the overall current account situation of the country.
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