New Delhi: Exporters body FIEO Wednesday said the slide in rupee, which closed at all-time low of 60.72 against the dollar, was a "serious" matter and asked traders to use derivatives to hedge the currency risk.
"The volatility is very serious and this is primarily on account of developments in the US economy as such depreciation is not India centric," Federation of Indian Export Organisations (FIEO) President Rafeeq Ahmed said in a statement.
The rupee has weakened by over 7 percent this month. From April 30, it has depreciated by nearly 13 percent.
Ahmed suggested exporters to use "option" derivative, "which may involve little extra premium to get best of forward rate or spot rate, whichever is higher on the date of remittance".
The rupee today tanked by a massive 106 paise to close at all-time low of 60.72 against dollar on heavy capital outflows and month-end dollar demand from importers, even as RBI intervened to stem the currency slide.
With rupee touching a life-time low against dollar, global buyers are putting pressure on exporters to offer discounts between 10 percent and 15 percent.
India's export growth entered the negative zone after a gap of four months, recording a contraction of 1.1 percent in May and leading to a trade deficit of USD 20.1 billion, highest in the last seven months.
First Published: Wednesday, June 26, 2013, 22:10