Anna 
The Indian rupee’s recent ascent to its highest level in nearly three months, reaching 82.9475 against the U.S. dollar, is encouraging importers to consider hedging a significant portion of their imminent foreign payments, according to bankers and analysts.
As of 11:20 a.m. IST, the rupee stood at 82.9475 against the U.S. dollar, a notable improvement from the previous close of 83.00. Earlier in the day, the currency reached 82.9150, marking its highest level since September 22.
Following a surprising decline in USD/INR on Friday, the foreign exchange market is witnessing a period of consolidation around the 83 mark, which is a natural expectation, as noted by a foreign exchange salesperson at a bank.
For importers, the current scenario presents an opportunity to explore further appreciation potential. However, some experts advocate a cautious approach, suggesting that importers consider hedging a substantial portion of their upcoming payments scheduled for this month.
The rupee’s recent strengthening beyond 83 is largely attributed to robust equity inflows. On Friday, foreign investors injected over $1 billion into Indian shares, following a week where purchases totaled $1.5 billion from Monday to Thursday, based on NSDL data. If this trend persists, December’s foreign inflows are poised to become the highest for the year.
In contrast, several other Asian currencies experienced weakness, primarily due to statements from Federal Reserve officials pushing back against the dovish interest rate outlook currently factored into investor expectations. New York Fed President John Williams, during a CNBC interview, emphasized that the Fed is not currently discussing rate cuts and deemed speculation about them as premature.
