News Article

Changes in Currency Appreciation Stirs Bike Industry

Home

MAARSSEN, The Netherlands – With the US dollar hitting a two-year high against the Euro and the Indian Rupee dropping to an all-time low level, the question is how this will change the current situation in the international bike market. Will China remain also for the bike sector the workshop of the world or

Changes in Currency Appreciation Stirs Bike Industry

MAARSSEN, The Netherlands – With the US dollar hitting a two-year high against the Euro and the Indian Rupee dropping to an all-time low level, the question is how this will change the current situation in the international bike market. Will China remain also for the bike sector the workshop of the world or will other countries like India or Eastern Europe take over?
  
Weighed by the strength of the US dollar in overseas markets and outflow of the greenback from the Indian market by foreign funds’ selling combined is pulling the Indian rupee to an all-time low level. The Indian rupee is hovering over 48 to the US dollar.

Indian currency has lost

Over the last year, the rupee has lost a big 10.20 to the dollar. This is in complete contrast to the strength of the rupee that was witnessed for over five years, between mid-2002 and end of 2007. So far this year itself, the Indian currency has lost nearly 21% against the dollar. Market analysts claim that the pressure on the rupee will continue.

The Indian bicycle industry is upbeat about the current situation as most of the major exporters still do their export invoicing in the greenback. “We have been covering our losses from the last few years due to appreciating dollar. 95% of our exports is still in dollars. We have booked orders at INR 38 whereas the dollar is reaching INR 48 these days,” says Sanjeev Malhotra, Director Exports of Ralson Industries.

Another major Indian component exporter echoes the same sentiments. “We have been faced reversals in the exports due to strong Indian rupee. Short-term benefits are also there but if the momentum sustains for another one year the advantages would be substantial,” says Rohan Bhogal of Bhogal Exports

Comment on this article