Photo: MintMumbai: Just six months ago, Indian companies and policy makers were grappling with a record-low exchange rate. While the currency’s 5.6% jump against the dollar so far this year will help tamp down inflation, it’s posing a challenge for the earnings of India’s exporters. “The sharp appreciation of the rupee is a matter of concern,” said Rakesh Tarway, head of research at Reliance Securities in Mumbai. Most analysts think the currency will weaken by year-end, with 66.41 a dollar the median estimate in a Bloomberg survey. Companies that export to multiple markets will have a tougher time due to the complexity of hedging, he said.

Source: Mint May 15, 2017 03:11 UTC