www.rupeedesk.in
Stocks of major information technology companies are seen correcting next week due to volatility in the rupee's exchange rate. The rupee fell to a fresh record low of 61.8000 a dollar on Tuesday, weighed down by heavy dollar demand. The rupee's fall was despite various liquidity-tightening measures by the RBI that sought to support the rupee by making speculation in the currency expensive. While there is an uptrend at present, due to the positive Apr-Jun results, a correction is likely due to currency volatility in the coming weeks. While on one hand a weak rupee is seen helping IT companies report positive headline numbers, the high volatility does not bode well for these companies which have substantial currency hedges.
Stocks of major information technology companies are seen correcting next week due to volatility in the rupee's exchange rate. The rupee fell to a fresh record low of 61.8000 a dollar on Tuesday, weighed down by heavy dollar demand. The rupee's fall was despite various liquidity-tightening measures by the RBI that sought to support the rupee by making speculation in the currency expensive. While there is an uptrend at present, due to the positive Apr-Jun results, a correction is likely due to currency volatility in the coming weeks. While on one hand a weak rupee is seen helping IT companies report positive headline numbers, the high volatility does not bode well for these companies which have substantial currency hedges.
