Indian election uncertainty curbs corporate forex hedging

Despite 2013 rupee volatility Indian corporates are reluctant to hedge

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Although stability in the Indian rupee has returned in the year-to-date following a volatile 2013, that confidence is at risk with the prospect of a more volatile currency likely to hinge on the outcome of Indian general elections for which voting is taking place from April 7 to May 12, with the result announced on May 16. The rupee was one of the worst performing Asian currencies in 2013, down 12.4% for the year against the US dollar, with only the Japanese yen and the Indonesian rupiah (IDR