---
title: "Heavy importer hedging, exporter reluctance weigh on rupee, data shows"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/285330748.md"
description: "Indian importers are heavily hedging in the foreign exchange market, with forward hedges worth nearly $58 billion in April, while exporters are hesitant, booking only about $24 billion. The rupee has declined over 5% this year, hitting a record low of 95.4325. The disparity in hedging activity is putting additional pressure on the rupee, as RBI interventions may not sufficiently counterbalance the negative balance-of-payments dynamics, leading to continued exporter reluctance in the FX market."
datetime: "2026-05-06T07:25:11.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/285330748.md)
  - [en](https://longbridge.com/en/news/285330748.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/285330748.md)
---

# Heavy importer hedging, exporter reluctance weigh on rupee, data shows

By Jaspreet Kalra

MUMBAI, May 6(Reuters) - Indian importers continue to dominate hedging in ‌the domestic foreign exchange market, while exporters ‌hold back as concerns over elevated oil prices kept ​expectations of rupee depreciation entrenched.

The rupee has declined more than 5% so far this year and hit a record low of 95.4325 ‌on Tuesday. It ⁠recovered modestly on Wednesday.

Here are some details:

· In April, the second month ⁠of the U.S.-Iran war, importers booked forward hedges worth nearly $58 billion while exporters' activity stood ​at about $24 ​billion, according to ​data from clearing ‌house CCIL.

· Year-on-year importer hedging climbed nearly 52% versus 15% rise for exporters.

· Between January and April 2026, importers booked $236.6 billion in forward hedges, far exceeding $111.7 billion for exporters.

· Traders ‌and analysts say the ​skew in importer-exporter hedging activity ​is adding ​pressure on the rupee.

· RBI interventions ‌can smooth volatility but ​are unlikely ​to offset adverse balance-of-payments dynamics that have anchored INR weakness expectations, which is why ​exporters have ‌stayed away from the FX market, analysts ​at ANZ said.

(Reporting by Jaspreet Kalra; ​Editing by Eileen Soreng)

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