Importers continue rupee hedging despite RBI's costly measures

Importers continue rupee hedging despite RBI's costly measures. Indian companies are maintaining foreign exchange hedges to protect against volatility, even as the Reserve Bank raises costs to discourage such activity. The central bank imposed higher premiums on forward contracts, pushing 1-year hedge costs to 8–9% from 5–6% earlier. Firms in oil, capital goods, and electronics remain active, prioritizing risk management over cost.

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