Indian exporters to increase hedge ratios on rising rupee
Indian corporate treasurers with exposure to rupee appreciation risk should look to increase their hedge ratios and use foreign exchange options to mitigate risk
Indian IT companies with exposure to US dollar receivables should look to increase their hedge ratios given the expected appreciation of the Indian rupee following the recent election results, says Rahul Magan, corporate treasury manager at EXL Service, a business consultancy, in Uttar Pradesh, India.
Indian IT companies currently have an estimated $80 billion of receivables in US dollars, a significant portion of which remains unhedged. The rupee has appreciated 5% year-to-date, from 63.8 in
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