(IDEX Online News) – With India's rupee continuing to decline against the dollar, imports of diamonds have come to a halt over the past two weeks, according to The Times of India (TOI).

 

The rupee last week dropped to a record low of 68 to the dollar last week before pulling back slightly after the Reserve Bank of India's intervention in the foreign exchange market and the sale of $400 million by Indian industrial giant Reliance Industries.

 

Bharat Diamond Bourse member Amit Shah said, "There is tension in the diamond market as fresh imports have stopped. The industry is fully dependent on imports. Over 90 percent of rough diamonds in India are imported from Africa, Russia, Belgium and Dubai.

 

"Small importers typically keep the option of open payment, they do not book dollars at a fixed rate. The mood began to fall as the exchange rate fell below Rs 55 to a dollar, but at 68 rupees to the dollar, business has come to a grinding halt," the TOI reported him as saying.