MUMBAI, May 6(Reuters) - Indian importers continue to dominate hedging in the domestic foreign exchange market, while exporters hold back as concerns over elevated oil prices kept expectations of rupee depreciation entrenched.
The rupee has declined more than 5% so far this year and hit a record low of 95.4325 on Tuesday. It recovered modestly on Wednesday.
Here are some details:
· In April, the second month of the U.S.-Iran war, importers booked forward hedges worth nearly $58 billion while exporters' activity stood at about $24 billion, according to data from clearing house CCIL.
· Year-on-year importer hedging climbed nearly 52% versus 15% rise for exporters.
· Between January and April 2026, importers booked $236.6 billion in forward hedges, far exceeding $111.7 billion for exporters.
· Traders and analysts say the skew in importer-exporter hedging activity is adding pressure on the rupee.
· RBI interventions can smooth volatility but are unlikely to offset adverse balance-of-payments dynamics that have anchored INR weakness expectations, which is why exporters have stayed away from the FX market, analysts at ANZ said.
(Reporting by Jaspreet Kalra; Editing by Eileen Soreng)
By Jaspreet Kalra
