Business Standard

IT and pharma start to catch up

A falling rupee will improve valuations of these sectors


Devangshu Datta
The rupee has fallen 5 per cent against the dollar since January 1, 2018. It's fallen more against other currencies, by 6.5 per cent versus Euro, 8.2 per cent against the Yen and 8.5 per cent against the pound. The dollar has lost ground versus most currencies. 

Given that the trade deficit and the current account deficit (CAD) are rising, the rupee's weakness is beneficial. The trade deficit hit $157 bn in 2017-18, while the CAD rose to 1.9 per cent of the gross domestic product (GDP).  This is despite good export growth of nearly 10 per cent.  

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Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Apr 29 2018 | 8:39 PM IST

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