Indian Rupee Getting Cheaper: Opportunity or Curse?
By siliconindia
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Wednesday, 23 November 2011, 01:13 IST |
5 Comments
9. Investors:
Typically, the rupee's slide is bad news for equity investors, because it worsens sentiment in the markets. A falling currency increases the cost of imported inputs for companies and that weighs on margins, dragging profitability lower. While, in general, a depreciating rupee helps exporters like software service providers, too much volatility in the currency's value can also cause problems.