A depreciating rupee, combined with slowing demand and growth in developed economies, could hit the revenues of export-oriented sectors such as IT, pharma and auto components
The Indian rupee, and other emerging market currencies, have been on a slippery slope for the past few months due to a strong US dollar index, which has been pumped up by aggressive tightening by the US Federal Reserve to tame inflation
Illustration: Chaitanya Dinesh Surpur
The continuing slide in the Indian rupee is anticipated to be a double whammy for companies that draw a major chunk of their revenues from exports. Weakness in the Indian currency is likely to be followed by lower demand, as most developed economies are apprehensive of witnessing significant slowdown in growth, which may hit revenues of information technology (IT) firms and auto exporters, say experts.