Can Rupee Fall Cushion Tariff-Hit Exporters?

Rupee hits low of 88.47 intra-day due to dollar demand from importers, tariff uncertainty, and foreign fund outflow

- BENN KOCHUVEEDAN @ Mumbai

WHILE the lingering tariff worries and demand from importers weighed down on the rupee, sending it to a new record low of 88.47 intra-day on Thursday (closing at 88.44), the tariff-hit exporters see a glimmer of hope in protecting their margins with the currency getting battered more, at least in the immediate short-term.

Falling rupee against the dollar makes exports cheaper in the US, which has increased tariffs on most Indian exports to 50%. Experts feel even if the depreciation in the rupee may not fully compensate for the 25-30% price disadvantage, it is still some cushion for the exporters in the short-term.