Re Zooms To 41.90/$

Mumbai: The sharp appreciation of the rupee by over 5 per cent in the current year is hoped to adversely impact the margins of most exporters. The rupee opened at 42.55/57 and closed at 41.90/91, stronger by about 60 paise against the previous close of 42.51/52 on April 13. The rupee is over-valued by almost 10 per cent according to the real effective exchange rate. One per cent appreciation in the rupee hits the revenues of an export-oriented IT company by one per cent and margins by 30-50 basis points. However, one has to also see how the IT companies have hedged their positions in the market.