Falling Rupee - Brings cheers!

IT INDUSTRY:

The weakening rupee coupled with the pickup in demand for technology products and services is helping the cause of Indian companies.

β€œIt is good for the industry. There may be increase in hedging fee. But no company takes cover for 100 per cent revenues. Net-net, they benefit out of increase in dollar value,” said Ankita Somani, sector analyst at Angel Broking. The rupee gone below ` 60 mark against the U.S. dollar.

Despite the windfall predicted for Indian IT firms, it is unlikely that the benefits accruing from a weaker rupee will be passed on to clients.

TOURISM:

India has become a more attractive destination amid the sharp depreciation in the rupee and the continuing unrest in global tourist hotspots such as Egypt and Turkey, the uptick in bookings for this winter shows. Tour operators say with the rupee breaching the 61 mark against the US dollar, enquiries are pouring in and bookings have already risen by 15% compared with the previous year.