Indian corporates count forex losses from rupee depreciation

Living on the hedge

During the period following the financial crisis, the Indian rupee was a beneficiary of capital inflows with the Indian economy averaging growth of 8% per year while the West was experiencing negative growth. Successive bouts of quantitative easing from the US pushed the dollar lower and led to hot money flowing into Asia.

Over the past few months a number of factors have caused a reversal in this dynamic, pushing the rupee to a historic low of 60.8 versus the dollar on June 26, a depreciation