Rupee slide offers temporary relief to Indian IT firms

Sharp depreciation of rupee against US dollar is emerging as a near-term cushion for Indian information technology services companies, helping support profit margins at a time when demand growth remains weak, and concerns around artificial intelligence-led disruption continue to weigh on the sector.

Rupee, which recently slipped beyond 96 against dollar, has become one of the worst-performing Asian currencies in recent weeks. Analysts say the currency movement is likely to benefit export-heavy IT companies because a large share of their revenues comes from North America and Europe and is billed in dollars.