Rupee volatility impacts corporate hedging strategies
pre-market1 source ↓written by the desknot a recommendation
- record low beyond
- ₹92 per dollar
Market turbulence from the Iran war has caused significant mark-to-market losses for exporters in India, as the rupee fell to a record low beyond ₹92 per dollar. Importers are shifting to forward contracts amid rising volatility, with one-month dollar/rupee implied volatility reaching a nine-month high of 6.6%. This situation underscores the limitations of popular zero-cost option structures used by corporates.
Not investment advice. For informational purposes only.