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Fall in peers’ currencies to blunt India’s export edge

The greater fall of the Bangladeshi taka, India’s top competitor in garments, on top of its duty-free access to the US and the EU markets, will substantially boost Dhaka’s export edge.

Fall in peers’ currencies to blunt India’s export edge
The greater fall of the Bangladeshi taka will boost it's export edge

While an 8.5% fall in the rupee against the dollar since January will help exporters, the currencies of some of India’s competitors, too, have depreciated against the dollar, blunting the advantage for New Delhi, reports Banikinkar Pattanayak.

The greater fall of the Bangladeshi taka, India’s top competitor in garments, on top of its duty-free access to the US and the EU markets, will substantially boost Dhaka’s export edge. But the rupee’s performance against the greenback since the Ukraine crisis is still way better than in earlier crises. 

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