Corporate India expects the rupee to weaken more, with a majority of 440 respondents in an ING Vysya survey of 220 organisations predicting the rupee could fall to as low as 58 to the dollar in the near-term.
Of the respondents, 15% did not rule out the rupee breaching below 60 to the dollar, ING Vysya says.
The majority in the survey say RBI rules relaxing FX regulations would not impact hedging plans.
Exporters seen unlikely to hedge more because of short-term expectations of weak rupee, as they will want to catch better levels and avoid mark-to-market losses, ING says.
(curtsey : money control)
Rupesh Yatesh Dalal
Head Research Department