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India Inc braces for impact of rupee fall, rushes to take forward cover

In the short and medium term, chief financial officers are advising companies to take the right kind of derivatives products depending on their exposure

Rupee, Indian Rupee, Indian currency
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Almost 44 per cent of the funds raised by the Indian corporates overseas is unhedged as per RBI’s financial stability report of June this year thus increasing their liabilities as the rupee falls

Dev ChatterjeeShine Jacob Mumbai
Home-grown companies are preparing for life after the rupee falls to Rs 80 versus the US greenback. Companies without a natural hedge like export earnings are rushing to take forward cover as they expect the rupee to fall gradually in the next year to as much as Rs 86-87 to a dollar.

In the short and medium term, chief financial officers are advising companies to take the right kind of derivatives products depending on their exposure.

“The moment the US Federal Reserve rate hike gets over and discounted by the market, the equity market will start moving up in the

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First Published: Sep 22 2022 | 8:55 PM IST

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