No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Wednesday, October 29, 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
Asian stocks: Asian stocks open higher as AI, Fed lift sentiment

Asian stocks: Asian stocks open higher as AI, Fed lift sentiment

by TheAdviserMagazine
October 28, 2025
0

Asian stocks opened higher, buoyed by Wall Street optimism that artificial intelligence will keep fueling profits at major technology firms...

edit post
OrthoPediatrics outlines path to 12% baseline growth and free cash flow breakeven by 2026 amid clinic expansion and strong T&D momentum (NASDAQ:KIDS)

OrthoPediatrics outlines path to 12% baseline growth and free cash flow breakeven by 2026 amid clinic expansion and strong T&D momentum (NASDAQ:KIDS)

by TheAdviserMagazine
October 28, 2025
0

Seeking Alpha's Disclaimer: The earnings call insights are compilations of earnings call transcripts and other content available on the Seeking...

edit post
A major ICE shake-up is reportedly underway affecting at least half of the agency’s top leadership positions

A major ICE shake-up is reportedly underway affecting at least half of the agency’s top leadership positions

by TheAdviserMagazine
October 28, 2025
0

WASHINGTON (AP) — The Trump administration is reassigning at least half the top leadership at Immigration and Customs Enforcement offices...

edit post
Saudi power chair: Tariffs weaken the global energy transition and hurt humanity

Saudi power chair: Tariffs weaken the global energy transition and hurt humanity

by TheAdviserMagazine
October 28, 2025
0

The global energy transition continues to press forward, but tariff wars and the rising politicization of renewable power is hurting...

edit post
Judge extends order barring Trump administration from firing federal workers during shutdown

Judge extends order barring Trump administration from firing federal workers during shutdown

by TheAdviserMagazine
October 28, 2025
0

A federal judge in San Francisco on Tuesday indefinitely barred the Trump administration from firing federal employees during the government...

edit post
Wizz Air uncompromising on demands for Israel hub

Wizz Air uncompromising on demands for Israel hub

by TheAdviserMagazine
October 28, 2025
0

Senior officials from Israel’s Ministry of Transport have traveled to Hungary for intensive talks with top Wizz Air executives...

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
77-year-old popular furniture retailer closes store locations

77-year-old popular furniture retailer closes store locations

October 18, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
What to Do When a Loved One Dies in North Carolina

What to Do When a Loved One Dies in North Carolina

October 8, 2025
edit post
Another Violent Outburst – Democrats Inciting Civil Unrest

Another Violent Outburst – Democrats Inciting Civil Unrest

October 24, 2025
edit post
Probate vs. Non-Probate Assets: What’s the Difference?

Probate vs. Non-Probate Assets: What’s the Difference?

October 17, 2025
edit post
California Attorney Pleads Guilty For Role In 2M Ponzi Scheme

California Attorney Pleads Guilty For Role In $912M Ponzi Scheme

October 15, 2025
edit post
Check Point Q3 profit jumps 73.4% due to tax settlement

Check Point Q3 profit jumps 73.4% due to tax settlement

0
edit post
Fifth Circuit Expands Tire Import Excise Tax – Houston Tax Attorneys

Fifth Circuit Expands Tire Import Excise Tax – Houston Tax Attorneys

0
edit post
This San Francisco-based satellite company’s stock has doubled in the past three months

This San Francisco-based satellite company’s stock has doubled in the past three months

0
edit post
The U.S. LNG Boom Could Make Energy More Expensive for Americans

The U.S. LNG Boom Could Make Energy More Expensive for Americans

0
edit post
Trump says he expects to lower fentanyl-related tariffs on Beijing, discuss ‘farmers’

Trump says he expects to lower fentanyl-related tariffs on Beijing, discuss ‘farmers’

0
edit post
Trump Insider Whale Reloads 0M Long on BTC, ETH Ahead of Tomorrow’s Fed Rate Cut Decision

Trump Insider Whale Reloads $430M Long on BTC, ETH Ahead of Tomorrow’s Fed Rate Cut Decision

0
edit post
Trump says he expects to lower fentanyl-related tariffs on Beijing, discuss ‘farmers’

Trump says he expects to lower fentanyl-related tariffs on Beijing, discuss ‘farmers’

October 28, 2025
edit post
Asian stocks: Asian stocks open higher as AI, Fed lift sentiment

Asian stocks: Asian stocks open higher as AI, Fed lift sentiment

October 28, 2025
edit post
OrthoPediatrics outlines path to 12% baseline growth and free cash flow breakeven by 2026 amid clinic expansion and strong T&D momentum (NASDAQ:KIDS)

OrthoPediatrics outlines path to 12% baseline growth and free cash flow breakeven by 2026 amid clinic expansion and strong T&D momentum (NASDAQ:KIDS)

October 28, 2025
edit post
Most Popular Halloween Candy of 2025: What Trick-Or-Treaters Really Want

Most Popular Halloween Candy of 2025: What Trick-Or-Treaters Really Want

October 28, 2025
edit post
Inside CampusAI’s mission to close the AI training gap for everyday workers — check it out at TechCrunch Disrupt 2025

Inside CampusAI’s mission to close the AI training gap for everyday workers — check it out at TechCrunch Disrupt 2025

October 28, 2025
edit post
Advisors still in ‘collective dabbler’ stage of AI adoption

Advisors still in ‘collective dabbler’ stage of AI adoption

October 28, 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

  • Trump says he expects to lower fentanyl-related tariffs on Beijing, discuss ‘farmers’
  • Asian stocks: Asian stocks open higher as AI, Fed lift sentiment
  • OrthoPediatrics outlines path to 12% baseline growth and free cash flow breakeven by 2026 amid clinic expansion and strong T&D momentum (NASDAQ:KIDS)
  • 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.