New Delhi, Mar 26 (KNN) Continuous rise in rupee value will affect the margins of exporters, particularly the SMEs, and reduce their ability to compete in the international market.

The rupee is trading at 60.48 after hitting 60.47 against the dollar which is the highest since August 12, 2013. Later that month, the currency sank to a record low of 68.85 amid a fiscal deficit crisis and waning investor confidence.

The appreciating value of rupee is not good news for the country's export sector, as the Western markets will find it less profitable to look to the Indian market for imports as the currency of neighbouring country like China is depreciating.

The elevating Indian rupee makes Indian goods more expensive globally, benefitting competitors such as Bangladesh, Sri Lanka, Pakistan and China.

Provisional stock exchange data on Monday showed foreign funds bought shares worth USD 241.56 million.

Meanwhile Commerce and Industry Minister Anand Sharma said Indian exports will fall short of the USD 325 billion target envisaged in the current fiscal though it would be more than what was achieved in the last financial year.

The manufacturing sector, which constitutes over 75 per cent of the index has declined by 1.6 per cent in December 2013, as against a contraction of 0.8 per cent in the year-ago period.

The MSME sector contributes 40 percent to the country's total exports and over 8 percent to India's GDP.(KNN/ST)