IT industry worried over volatile currency

IT industry worried over volatile currency

Exporters may cheer rupee falling below the 55-level, but currency volatility has left software services firms worried as fluctuation hampers planning process for the $100 billion Indian IT-BPO industry.

Usually, a depreciating rupee helps IT companies improve their margins as they earn revenue in dollars.

However, with most companies hedging their earnings well in advance, the current fluctuation may not make huge difference. The rupee, on Monday, closed at all-time low of 55.03 against the dollar amid robust demand for the US currency from banks and importers.

The Indian currency has fallen about seven per cent against the dollar since April.

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