Rupees upward surge will hit IT ind badly: Infosys

Bangalore, Jun 15: The IT services, which brings in huge cache of dollar currency into the national exchequer, will suffer the most due to the appreciation of the rupee value against US Dollar, Infosys Joint Managing Director Kris Gopalakrishnan said today.

"Strengthening of the Rupee will have a big impact on the sector as each per centage point of appreciation can have an effect of up to 40 basis points on our margin," he told newsmen on the sidelines of Innovation Summit-2007, organised by CII here.

Mr Gopalakrishna said currency hedging would not compensate enough as it was only a short-term measure to lessen the impact.

He said the impact on the IT business would depend on factors like the currency and location. Rupee had risen by nine per cent against the US Dollar since December 2006 and was trading at Rs 40.90 this morning.

UNI