India Inc lines up to hedge forex exposures before it is too late

Unhedged positions may have gone as high as 80%, which is now changing

The recent movement in the rupee is being taken in all seriousness by corporates in India, and they are queuing up to hedge their foreign exchange (forex) exposures, say currency consultants.

But there is still some way to go before Corporate India, particularly importers, can say it is fortified against sudden shocks.

“Most companies do not hedge in a disciplined manner. Over time, the market will kill you,” says Jamal Mecklai, chief executive officer of Mecklai Financial Services.

Importers have started taking note of the gathering clouds and currency dealers say there is a new-found awareness of hedging.

“I would