Monday, May 7, 2007

Rise of Rupees

I'm not a big economist, i even don't know to calculate my tax properly. But the raise of Indian Rupee against us dollar is worrying me.
March 5 2007 1UsD = 44.40
May4, 2007 1USD= 40.9
Most of the IT companies in India get business from American customer and they pay in dollars. My billing rate is same in during the period. Assume let's have 160 billing hours per month and my billing rate be 40$/hr, then during march my company would have earned 160*40=6400usd, which intrun 6400*44.40= 2,84,160Rs . But in May for the same 6400 USD, my company will be getting 6400*40.9 =261760Rs. A difference of 22400Rs. If this continues what will be status of the IT coz, this will directly hit on our salary and inturn our economy growth. I also read that RBI is taking some measure to crub this. I pray to GOD this should happen ASAP.

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