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India’s Dollar Hedging Slumps as RBI Cracks Down on Speculation
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Currencies India’s Dollar Hedging Slumps as RBI Cracks Down on Speculation Indian companies cut dollar purchases used to hedge against rupee weakness to an eight-month low, a sign that the central bank’s crackdown on what it called speculative bets against the currency is yielding results. Buying of forward dollars, or commitments by companies to acquire the US currency at a later date, fell 35% in October from a record high the previous month to $49.5 billion, according to clearinghouse...
Currencies
India’s Dollar Hedging Slumps as RBI Cracks Down on Speculation
Indian companies cut dollar purchases used to hedge against rupee weakness to an eight-month low, a sign that the central bank’s crackdown on what it called speculative bets against the currency is yielding results.
Buying of forward dollars, or commitments by companies to acquire the US currency at a later date, fell 35% in October from a record high the previous month to $49.5 billion, according to clearinghouse data. The figure was the lowest since February and reflects hedging by importers against losses from a weaker rupee.