Date:26/04/2007 URL: http://www.thehindubusinessline.com/2007/04/26/stories/2007042605510100.htm

Back The other side of rupee

Our Bureau

New Delhi April 25 There is a flip side to the appreciating rupee, which went below Rs 41 to a dollar on Wednesday. Indian oil companies, for example, would see 7 to 8 per cent lower rupee outgo on their purchases in the international market. However, possibilities of passing on the benefit to consumers would depend on the end price of crude in the global market.

Exporters worried

Exporters, however, are jittery and feeling the heat with the rupee climbing to a nine-year high. The exporting community has urged the RBI to intervene and have a mechanism wherein the rupee is allowed to move within a specified range.

They apprehend that the competitiveness of exports might suffer more, if the rupee were to further strengthen in the coming days.