Opportunity for India Inc to take forward cover widens as rupee strengthens

Many mid-sized firms don't take proper forward cover, exposing themselves to risk; others are going for it as they feel the rupee will weaken again and hit 80 to the dollar

Chief financial officers (CFOs) of top Indian companies are back in the war room as a stronger rupee versus the dollar is giving them an opportunity to protect their unhedged foreign exchange exposure.

Despite a volatile currency, a large number of Indian firms -- especially mid-level -- do not take proper forward cover, thus exposing them to financial problems in case the rupee weakens against other currencies.

“Companies would do well to take this opportunity of low cost cover and protect themselves as much as they can while the strong rupee exists,” said Prabal Banerjee, former finance director, Bajaj Group. The party