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India Inc Braces for Weaker Rupee as Importer Hedges Hit Record $77 Billion
M
Moneycontrol•05-10-2026, 13:41
India Inc Braces for Weaker Rupee as Importer Hedges Hit Record $77 Billion
- •Indian companies are seeking protection against a potential rupee fall, with importer hedges reaching a record $77 billion in September, signaling persistent caution despite central bank measures.
- •Importers booked currency hedges worth nearly $77 billion in September, an 80% year-on-year increase and the highest monthly tally on record.
- •Exporters locked in protections worth $41 billion, up 77% year-on-year, but a significant gap remains between importer and exporter hedging activity.
- •The persistent gap in hedging activity, averaging about $30 billion per month, leaves the rupee reliant on central bank interventions.
- •Heightened importer hedging is driven by elevated oil prices, a global bond rout, and continuous foreign selling of Indian stocks, contributing to the rupee's 6.5% year-to-date weakening.
Key Questions Answered
Indian importers booked record currency hedges worth nearly $77 billion in September, representing an increase of more than 80% year-on-year and marking the highest monthly tally ever recorded according to clearing house data.
Heightened importer hedging persists due to ongoing downward pressure on the rupee driven by elevated global oil prices, a global bond rout, and persistent foreign selling of Indian stocks.
Between January and September, importers booked $576.6 billion in forward hedges, which far exceeded the $305.6 billion booked by exporters during the same period.
