Many Indian companies that have gone in for foreign currency loans believe the rupee will appreciate further against the dollar and have not hedged against the opposite, according to the treasury head of a domestic financial institution. That is especially true of companies that raised less than $10 million (Rs40.6 crore) in overseas loans, adds the treasury head, who did not wish to be identified.
This is despite steps taken by the finance ministry to slow down foreign currency inflows and curb the appreciation of the rupee. The finance ministry on Tuesday issued new, more stringent norms on external commercial borrowings (ECBs).
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