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Rupee's unexpected rebound to cause new problems for IT firms

After H-1B visa issue, rupee's unexpected rebound might cause new problems for IT firms. Rupee’s 5.6 percent jump against the dollar so far this year will help tamp down inflation and posing a challenge for the earnings of India's exporters. IT and drug companies are already facing problems with the American clampdown on working visas. Big Indian IT companies get 90% of their revenues in foreign currencies as each 1% gain in rupee erodes IT exporters margins by 0.25-0.30 percent.

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