India's IT services exporters whipped by currency headwinds

By Patturaja and Murugaboopathy BENGALURU, April 8 (Reuters) - The dollar's biggest quarterly rise against other major currencies since 2008 has undermined sales of India's IT services firms in non-U.S. markets, including Europe, in what was already a seasonally slow period. The greenback rose 9 percent against currencies including the euro in January-to-March from a quarter earlier, driven by the diverging outlook for U.S. monetary policy and economies such as Europe - the second-biggest market of Indian IT services exporters. The rupee found support in a market view that the U.S. will tighten monetary policy at a slower pace than thought, lowering the chances of capital outflows from emerging markets including India. The resulting cross-currency headwinds crimped quarter-on-quarter revenue growth of India's $146 billion IT industry by 2.25 to 3.00 percentage points in the final three months of the fiscal year ended on March 31, according to a report by brokerage and investment group CLSA this week.



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