Discuss what you need to do now on USDINR with the Outlook and Correct Prediction

Correct Prediction of USDINR

During a recent period of market volatility, the USD/INR reached a level close to 81.59. This movement stirred considerable concern among companies, especially exporters who heavily rely on favorable exchange rates for their business operations. There were views regarding the possibility of the rupee moving to levels as low as 80 or even 79.

In response to these market conditions, we took a proactive approach to communicating with our clients, providing them with reassurance and guidance during this uncertain period. We emphasized that the prevailing exchange rate fluctuations were likely temporary and presented a unique opportunity to engage in various risk management strategies.

Firstly, we advised our importer clients to hedge by buying dollars as a means of protecting themselves against potential losses that may have been caused by further depreciation of the rupee. Additionally, we advised clients to review their existing export hedges and adjust them according to the prevailing market conditions. This involved canceling/utilizing excess export hedges.

For clients who required hedging solutions, we introduced options strategies as a means of providing flexibility and taking potential advantage of the rupee moving to 83.

Now, the rupee has come to 82.80 levels. This highlights the importance of our proactive approach and the effectiveness of the risk management strategies we employed. By communicating timely and accurate information to our clients and guiding them through the intricacies of the currency market, we were able to assist them in making informed decisions and mitigating potential losses.