Rupee gains ground: Exporters advised to go easy on Euro, Pound Hedges

Business Remedies | Jaipur | With the US dollar under pressure globally, Indian exporters are being urged to moderate their hedging against the euro and pound. A weakening dollar-driven by expectations of a US Fed rate cut-has tilted forex dynamics, giving the rupee more strength against major currencies.

The Dollar Index has slipped below 100, while the euro and pound have appreciated over 2.5% against the rupee in recent weeks. Export-heavy sectors like textiles, pharma, and IT may benefit from a more flexible approach.

“Over-hedging now could lock exporters into less favourable rates,” said Priya Menon, senior economist at CR Forex. Companies are advised to shift to partial hedging or use options instead of outright forwards.

Meanwhile, the RBI has limited its intervention, allowing the rupee to appreciate gradually. India’s forex reserves rose $7.2 billion in two weeks, indicating selective support. Exporters should now watch for upcoming US and European central bank cues while keeping hedge ratios agile. The focus is shifting from risk avoidance to opportunity optimization.