Diamond Industry Devastated by Short Term US Dollar Rise

Last night,I caught up with the Chairman of one of India’s leading Diamond Companies….and he is worried about the further fate of the US $ inside a year from now !

The Diamond Industry is an export oriented and value added one…..Roughs are imported…polished and exported….The Imports were left unhedged but exports were hedged as Dollar at Rs 42/US $ was expected to weaken…Instead the US $ surged to Rs 50+/US $…Exports being hedged will not reap the benefit while Imports that were unhedged will see the cash flows impacted significantly as Diamond Houses will now have to pay at current rupee depreciated rates of  Rs 50/US $ 

Time to Change your Forex Team/Advisors guys !…With your losses they are anyway going to lose their jobs or their retainers !