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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.

In China, 75/72 POYs price fell US cents 5 a kg in the second week of August in Shengze while 75/36 was also down US cents 5 a kg. In Shandong, PFY market was mostly stable, with a few underpriced products up marginally. In Jiangsu, PFY market was supported by the strong PTA market. In addition, downstream buying improved significantly as the market saw a long-awaited recovery. Although prices rolled over in Yuan term, they declined sharply in US$ due to significant devaluation of the currency.

Related Keywords: dty price in Pakistan, polyester filament yarn price, Polyester price, poy price in China, poy price in India, yuan devaluation

Related Keywords: apparel importers, rupee depreciation, textile export, textile import, yuan devaluation

The recent devaluation of the yuan has led to a weakness in the rupee against the dollar. So far in 2015-16, the rupee has depreciated 13.9 per cent and 6.6 per cent against the euro and dollar, respectively.

The depreciating rupee has prompted textile and apparel importers abroad to renegotiate the terms of their contracts with Indian exporters. Now, new contract orders are being deferred till the Indian currency stabilises.

Related Keywords: Currency devaluation, RMB devaluation, textile export, yarn export, yuan devaluation

The People’s Bank of China (PBC) devalued the Renminbi (RMB/Yuan) on 11 August by 2015 by 1.9%, the largest one day devaluation since 1994. The ‘daily fix’ of the currency to the US$ moved out to almost 6.23 Yuan versus 6.1162 Yuan the previous day. Although the move spooked global markets and raised yet more concerns about the health of the Chinese economy, it will be interesting to gauge its impact on global trade, particularly that of textiles.