Indian banks keep overseas FX deposits largely unhedged
Indian banks have left much of their future interest payments on overseas FX deposits unhedged, creating potential dollar demand and adding depreciation pressure for the rupee, five bankers said.
By Nimesh Vora and Jaspreet Kalra Indian banks have left much of their future interest payments on overseas FX deposits unhedged, bankers said, creating a potential source of dollar demand that could add to depreciation pressure if the rupee weakens. Lenders have raised more than $12 in overseas FX deposits.