Indian rupee nears 97 per US dollar as worries grow
The Indian rupee just neared the 97 per US dollar, and investors are paying close attention.
With the rupee dropping 10% in a year, the biggest fall among Asian currencies, companies are talking more than ever about "rupee depreciation" and "hedging" on earnings calls.
There's growing worry that the currency could soon hit 100 per US dollar.
Rupee weakness helps exporters, hurts importers
Export-focused companies like software firms are seeing a boost in overseas income thanks to the weaker rupee.
But for businesses that rely on imports, it's tough: Welspun Living says its costs for things like crude and cotton have jumped up to 40%.
Some, like Manorama Industries, have tried to protect themselves by hedging most of their foreign exposure, but losses from currency swings still hurt.
Hedging becomes expensive, importers scramble
Hedging against further drops is getting expensive.
Importers are scrambling to lock in rates while exporters hold off on converting dollars because of market volatility.