Coronavirus fear: Biz disruption will outweigh currency gain, say analysts

The rupee declined 0.3 per cent on Friday to hit an all-time low of Rs 75.20 against the dollar

As Indian rupee slides to a record low against the US dollar, this is unlikely to cheer the Indian software services providers owing to the novel coronavirus (COVID-19) outbreak.

Analysts tracking the sector said COVID-19 was not only expected to disrupt the core businesses of IT services firms but would also defer the new deal signings.

“There are a lot of worrying factors despite the currency losing value. Their workflow and demand are facing uncertainty due to COVID-19,” said Harit Shah, senior analyst at IndiaNivesh.

The fall in core business of IT firms is likely to bring down the dollar revenue of these