Indian Rupee Falls 11% Against Dollar Over Past Year, Enterprises Seek Hedging Products

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According to Citigroup, Indian enterprises expect the Indian rupee to continue weakening and are increasing hedging efforts, with the currency having depreciated 11% against the dollar over the past year, making it Asia's worst performer, according to Jin10 on July 16. Vandana Bhatter, head of corporate foreign exchange sales for Citigroup Asia-Pacific, stated that clients believe the rupee will continue to weaken in line with interest rate differentials over the medium to long term, prompting them to seek financial products that provide protection while allowing them to benefit from significant rupee volatility.
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