No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Tuesday, October 7, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

Rupee: Rupee recovery gives importers a good hedging opportunity

by TheAdviserMagazine
6 months ago
in Business
Reading Time: 2 mins read
A A
Rupee: Rupee recovery gives importers a good hedging opportunity
Share on FacebookShare on TwitterShare on LInkedIn


Mumbai: The rebound in the rupee presents an opportunity for importers to hedge their foreign exchange exposure at cheaper levels, as one-year dollar-rupee forward premiums have dropped, according to experts.

The sharp rebound in the Indian currency, from its record low of ₹87.93 per dollar in the middle of February, gives a window for companies to hedge their positions, even as the long-term outlook for the rupee remains weak, according to currency traders and treasury heads.

The rupee closed at 85.36/$1 on Thursday, while the dollar-rupee forward premiums declined with the 1-year implied yield easing to a one-month low of 2.13%, LSEG data showed. Money markets were shut for Good Friday. Expectations are that the rupee’s bounce is temporary. Standard Chartered Bank expects the rupee to be at 87.75/$1 by the end of 2025, while MUFG Bank forecasts a level of 87.50/$1.

“This is a wonderful opportunity for importers to cover their positions, and anything around 85.50 to 85.25 is an extremely good level to hedge your imports,” said Sajal Gupta, head of forex and commodities at Nuvama. “I don’t see the rupee appreciating beyond 85 levels and sustaining there, so importers should make most of this appreciation.”

Agencies

Rupee volatility, as measured by the one-month implied volatility, rose to 4.5%, the highest since August 2023, LSEG data showed, due to two-way swings, as traders cope with implications of the trade war. The local currency has traded in the near 2-rupee range in the last couple weeks, from 84.96/$1 to 86.70/$1.

ET logo

Live Events

Although exporters remain largely on the sidelines, recent two-way volatility in the rupee has prompted many to hedge their positions. However, they continue to adopt a wait-and-watch approach, anticipating further depreciation of the currency.Exporters are waiting for the rupee to depreciate to levels beyond 86.50 to 86.80 to make more of their dollar earnings. Traders, however, do not expect the rupee to dip past the 87/$1 mark anytime soon.Anil Bhansli, head of treasury at Finrex Treasury Advisors, is asking his exporter clients to wait and start hedging whenever the rate goes beyond 86/$1. “I have seen that the rate is not crossing the 86-mark for a few days now, and this is making the exporters a bit panicky,” he said.

“Exporters are sitting on the sidelines, waiting for a bounce-back for future receivables and converting them at 86+ levels. Recently also the rupee had bounced back from 85 levels to 86.80 levels. The 87 levels, however, don’t seem to be coming soon,” said Ritesh Bhansali, deputy CEO at Mecklai Financial Services.

However, exporters cannot hold off converting due to capital requirement. “Conversion by exporters is happening even at a lower value, because ultimately money is important and cash requirements are always there,” Bhansali said.



Source link

Tags: goodHedgingimportersopportunityRecoveryrupee
ShareTweetShare
Previous Post

Goldman Sachs Flags Major Dollar Slide as Tariffs Hit US Growth and Trust

Next Post

Tesla bull calls ‘code red’ saying Musk needs to leave DOGE

Related Posts

edit post
Dollar rallies as US shutdown drags on, weighing on confidence

Dollar rallies as US shutdown drags on, weighing on confidence

by TheAdviserMagazine
October 7, 2025
0

The U.S. dollar rose to its strongest levels in six weeks in early Asian trading on Wednesday as risks around...

edit post
Top analyst on concerns about Nvidia fueling an AI bubble: ‘We’ve seen this movie before. It was called Enron, Tyco’

Top analyst on concerns about Nvidia fueling an AI bubble: ‘We’ve seen this movie before. It was called Enron, Tyco’

by TheAdviserMagazine
October 7, 2025
0

A top Wall Street analyst has sounded an alarm over the U.S. equity bull market, warning that its remarkable run...

edit post
Deloitte was caught using AI in 0,000 report to help the Australian government crack down on welfare after a researcher flagged hallucinations

Deloitte was caught using AI in $290,000 report to help the Australian government crack down on welfare after a researcher flagged hallucinations

by TheAdviserMagazine
October 7, 2025
0

Deloitte’s member firm in Australia will pay the government a partial refund for a $290,000 report that contained alleged AI-generated...

edit post
Hedge fund billionaire Paul Tudor Jones says 2025 is ‘so much more potentially explosive than 1999’ because of the way bull markets always end

Hedge fund billionaire Paul Tudor Jones says 2025 is ‘so much more potentially explosive than 1999’ because of the way bull markets always end

by TheAdviserMagazine
October 7, 2025
0

Hedge fund billionaire Paul Tudor Jones, founder and CIO of Tudor Investment Corporation, has raised alarms about the state of...

edit post
Nearly 70% of Americans think the economy is on the ‘wrong track’ and it’s a bad time to buy a home, Fannie Mae survey shows

Nearly 70% of Americans think the economy is on the ‘wrong track’ and it’s a bad time to buy a home, Fannie Mae survey shows

by TheAdviserMagazine
October 7, 2025
0

A growing sense of economic pessimism is taking hold in the U.S., as new Fannie Mae survey data reveals nearly...

edit post
Vijay Kedia buys on dips, acquires Rs 11 crore stake in smallcap company via bulk deal

Vijay Kedia buys on dips, acquires Rs 11 crore stake in smallcap company via bulk deal

by TheAdviserMagazine
October 7, 2025
0

Marquee investor Vijay Kedia picked up stake worth Rs 11 crore in Gujarat-based Eimco Elecon (India) on Tuesday via a...

Next Post
edit post
Tesla bull calls ‘code red’ saying Musk needs to leave DOGE

Tesla bull calls ‘code red’ saying Musk needs to leave DOGE

edit post
At multi-year highs: These 6 stocks witness 5-year swing high breakout – On a high

At multi-year highs: These 6 stocks witness 5-year swing high breakout - On a high

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
California May Reimplement Mask Mandates

California May Reimplement Mask Mandates

September 5, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

September 9, 2025
edit post
Tips to Apply for Mental Health SSDI Without Therapy

Tips to Apply for Mental Health SSDI Without Therapy

September 19, 2025
edit post
Dollar rallies as US shutdown drags on, weighing on confidence

Dollar rallies as US shutdown drags on, weighing on confidence

0
edit post
Italy At A Standstill Over Gaza Protests

Italy At A Standstill Over Gaza Protests

0
edit post
Meteora AG reveals $MET tokenomics; 48% of supply to circulate at TGE

Meteora AG reveals $MET tokenomics; 48% of supply to circulate at TGE

0
edit post
Don’t Hide Money In The Toilet: Conversations With A Burglar

Don’t Hide Money In The Toilet: Conversations With A Burglar

0
edit post
Deloitte was caught using AI in 0,000 report to help the Australian government crack down on welfare after a researcher flagged hallucinations

Deloitte was caught using AI in $290,000 report to help the Australian government crack down on welfare after a researcher flagged hallucinations

0
edit post
Better Health Literacy Means Better Preventive Care

Better Health Literacy Means Better Preventive Care

0
edit post
Dollar rallies as US shutdown drags on, weighing on confidence

Dollar rallies as US shutdown drags on, weighing on confidence

October 7, 2025
edit post
Meteora AG reveals $MET tokenomics; 48% of supply to circulate at TGE

Meteora AG reveals $MET tokenomics; 48% of supply to circulate at TGE

October 7, 2025
edit post
Is AI Really Coming After Your Job?

Is AI Really Coming After Your Job?

October 7, 2025
edit post
XRP Is Already Penetrating SWIFT’s Network Through Multiple Entry Points, Expert Highlights How

XRP Is Already Penetrating SWIFT’s Network Through Multiple Entry Points, Expert Highlights How

October 7, 2025
edit post
Government shutdown could drain financial advisor optimism

Government shutdown could drain financial advisor optimism

October 7, 2025
edit post
Top analyst on concerns about Nvidia fueling an AI bubble: ‘We’ve seen this movie before. It was called Enron, Tyco’

Top analyst on concerns about Nvidia fueling an AI bubble: ‘We’ve seen this movie before. It was called Enron, Tyco’

October 7, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Dollar rallies as US shutdown drags on, weighing on confidence
  • Meteora AG reveals $MET tokenomics; 48% of supply to circulate at TGE
  • Is AI Really Coming After Your Job?
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.