Indian firms adopt advanced hedges as rupee falls nearly 11%
The Indian rupee has lost almost 11% against the US dollar over the past year, making it Asia's weakest currency over that period.
Citigroup's Indian corporate clients aren't just watching, they're gearing up for more ups and downs by changing how they manage their money.
As Vandana Bhatter from Citi puts it, companies are using new financial tools to hedge risk and take advantage of potential large moves in the rupee.
Citigroup expects rupee 92-97 per USD
Instead of sticking with basic strategies, more Indian firms are choosing advanced options and mixing different hedging methods to deal with the rupee's swings.
This shift comes as global pressures, like higher US tariffs, rising oil prices from the Iran war, and US interest rate hikes, keep weighing on India's currency.
Citigroup expects the rupee to stay under pressure, possibly trading between 92 and 97 per US dollar for a while.