Rupee's record low against yuan could benefit Indian exporters
The Indian rupee just hit a record low of 12.33 against the offshore Chinese yuan this Friday, after slipping 1.2% in a week and nearly 6% over four months.
Oddly enough, this could actually help a segment of Indian exporters, especially now that the US has imposed an additional 25% tariff on goods from India, bringing the total to 50%, which is double the previous rate.
A weaker rupee makes Indian products more competitive
A weaker rupee means Indian products like textiles and chemicals get more competitive compared to China's—possibly shrinking India's trade gap with its neighbor.
The Reserve Bank of India is keeping a close eye on things, but so far, the rupee is holding steady against the US dollar.
Experts like Dhiraj Nim from ANZ Bank see this as a positive trend since it doesn't make the rupee too weak overall.