New Delhi: The Indian Rupee, at 8.35 per cent, has recorded the second highest appreciation between January and June of the current year, behind the 9.28 per cent recorded by Brazil''s Real, according to a study conducted by industry body Assocham.

The study says that this appreciation is expected to decelerate India''s exports proceeds to $145 billion, against the targeted figure of $160 billion for 2007-08.

The study took note of currencies of emerging economies that are in direct competition with Indian exporters China, Taiwan, Brazil, Indonesia, Malaysia, Hong Kong, Pakistan, Russia, Thailand, Bangladesh, Indonesia, South Korea and Singapore.

According to the study, the major export sectors directly impacted by the appreciation are IT & services, textiles, leather, sugar and pharmaceuticals.

Even as the appreciation of rupee is affecting the realisations and competitiveness of the IT software and services export segment, the small and medium enterprises, which traditionally operate on thin margins, are badly affected as well.

The textiles and leather industry is also badly affected. The Chinese, Bangladeshi and Pakistani currencies, which provide direct competition to Indian textile exports in the region, have seen their currencies appreciate very marginally.