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Nasscom urges government to keep eye on global currency fluctuation

Hyderabad: Industry body Nasscom on Wednesday urged the government to keep an eye on global developments with regard to currency fluctuation and step in when the situation warrants.

“The volatility of (Rupee against US Dollar) that we see in the market is not good for any industry or country. So on behalf of Nasscom, we urge the government to track the global developments and step in when necessary to ensure that the volatility of Rupee is minimised,” Chairman BVR Mohan Reddy told PTI.

He, however, has ruled out any negative impact on the Indian IT industry following the devaluation of yuan.

Asia’s largest economy recently devalued its currency by almost 4% to boost its slackening economy.

Reddy said though the appreciated dollar may bring temporary cheers to Indian exporters, the industry does not want to make money out of forex fluctuations.

“Rupee has also lost lot of charm and value against the dollar, which has become stronger. Now that will certainly help the export industry. But I will never say it will help the challenges of volatility that are associated with dollar. We do not want to make money out of foreign exchange fluctuation. More importantly we want to make money out of our business,” he said.

When asked about the Indian IT industry’s exposure to Chinese market, the Nasscom chief said the exports to the country are very small in terms of value.

He further said that some of the biggies like TCS and Infosys have opened their offices in China as contractual obligation from their business partners.