Related Keywords: American dollar, cotton exports, Global textile market, Indian cotton, Indian textile exports, rupee depreciation, yuan devaluation
The rupee fell by 36 paise (0.5 per cent) to close at a two-year low of 66.82 against the American dollar on Monday on firm dollar demand from banks and importers and volatile domestic equities. The Indian currency has depreciated about 7 percent since April.
The depreciation of the rupee would have ambiguous impact on Indian textile industry. Fall in rupee will possibly benefit the Indian textile exporters as China could further devalue its currency to increase competition.
