In Hyderabad

Rupee yesterday hit a 9 year high against the dollar at 40.28 and then closed the day at 40.51.  Rupee hit its strongest levels since May 1998 and has been the best performing asian currency this year.

Rupee tested the 40.50 level all of last week before hitting this high.   This while alarming for the Indian exporters may help control the inflation and make imported goods a little more affordable for the general public. The effect of this dollar appreciation is very visible in the ornamental gold price in India.

News indicates that TCS, Infosys and Wipro may be making plans to add a currency clause in their contracts to protect against the currency fluctuation.