6/5/2026, 6:56:02 pm

Rupee falls as importers hedge heavily, faced with exporter reluctance

Indian importers dominated hedging in the domestic foreign exchange market in April, booking $58 billion in forward hedges, surpassing exporters' $24 billion. This activity skewed towards importers, with a 52% year-over-year increase in hedging. Rupee declined 5% so far this year, hitting a record low of 95.4325 on Tuesday and analysts attribute this to importer-exporter hedging imbalance.