Perfect Sourcing - September 2018
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CAN DOLLAR FLUCTUATION AND US AND CHINA TRADE WAR BRING BACK GLORIOUS DAYS? As the dollar index rose to its highest level, crossing Rs 70 mark, exporters anticipated a positive impact whereas, the importers are worried as the raw material, like fabrics, accessories and machines coming from other countries, will now be available at higher prices. According to Motilal Oswal report, rupee fell to fresh record low levels primarily on back of surge in global crude oil prices and on expectation that higher crude oil prices will start hurting India’s import bill. Major Asian as well as emerging market currencies remains under pressure and that also is weighing on the rupee. As far as the apparel trade is concerned it is observed to be coming back on the growth trajectory with an estimated growth of 4-5% in the first half of CY2018 and 2% in CY2017 in US dollar terms. The positive trend in the global apparel market is being led by the strong recovery in apparel imports by the European Union (EU), which accounts for two-fifth of the global apparel trade, it added.
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