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

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.