Rupee Hits 90+: Why IT Stocks Are a Safe Bet Amid Currency Volatility
Against the backdrop of the Rupee breaching the 90-per-dollar mark, the Indian IT sector shines as a financial fortress for investors seeking shelter from currency turbulence. Like a seasoned sailor navigating choppy waters, IT companies benefit from dollar-linked revenues even as the Rupee weakens, turning the volatility beast into a profit opportunity. Yet, beneath this apparent safety lie nuanced vulnerabilities — from margin pressures due to rising costs to global demand uncertainties — proving that even safe havens need careful scrutiny.
The Indian Rupee’s sharp dip beyond 90 against the US dollar in early December 2025 marks a significant shift in currency dynamics, influenced by global macroeconomic factors and domestic pressures. This depreciation ostensibly favors export-oriented IT firms who earn primarily in dollars, providing them a natural hedge and contributing to their status as preferred investment options during currency dips. Nonetheless, risks such as wage inflation, geopolitical tensions affecting global demand, and potential policy shifts pose real threats that investors must weigh. A strategic balance of opportunity and caution is essential as the IT sector navigates these complex waters.
