India: Textile exporters in a spin as euro slumps

Industry news

India: Textile exporters in a spin as euro slumps

The euro tumbled against the dollar falling 3.6 cents after the strong US jobs data released last week. With the euro at 1.06 to the dollar, the market is bracing for the currency reaching parity with the dollar that would mean a further fall.

Businesses close to home are feeling the effects of euro’s troubles. Textile exporters in Tirupur, Tamil Nadu, who have sizeable exposure to the currency, have been hit hard after the recent drop in the currency’s exchange rates.

Concerns about the euro zone economy are not new, but the currency’s sudden plunge in December 2014 and now has caught the textile merchants unawares. The euro that was trading at around Rs 85 last year slipped slowly to around Rs 75 levels by early December.