The Greenback Rodeo Blues

But then there is another set of people who think that the rupee rise is a blip and will correct itself within this year. According to Dutta, many exporters are hoarding dollars and booking orders in the near future in the expectation that the dollar will soon hit Rs 45. Other corporates and software exporters, says Rahul Nath, CEO and country manager, FCM Travel Solutions, are keeping portions of their earnings in dollar accounts in the hope that the rupee will slide in the next 2-3 months. He points out that many companies, whose executives travel constantly to overseas offices, are also buying dollars at the current prices to cut future costs. And the smarter guys are making international payments in rupees to save their dollars. Not surprisingly, corporates are increasingly holding their conferences and off-sites in foreign locations. "There is an unprecedented amount of outbound travel, and the corporate sector is saving money," adds Nath.