currency-volatilityTaking advantage of Flat Volatility and spike in Volatility of your currency exposure

September 22nd, 2017

The Indian Rupee (INR) has been one of the strongest performing Asian currencies this year and has appreciated steadily with the spot USD/INR rates settling between USDINR 63.60 to USDINR 64.60 since April 2017. Strong capital inflows have helped the Indian Rupees cause along with RBI’s hawkish stance. This narrow range of USD/INR movement has played a role in the low volatility of USD/INR. The volatility of INR/USD is at its lowest in 12 months.

This movement in FX market has a bearing movement on a company’s FX exposure. If you were the treasurer of an export focused unit, you would have trouble sleeping with this kind of USD/INR movement. However, had you hedged your exposure, you might have parlayed away some of your worries. The low volatility just might have helped you in cutting your losses. However, had you used IBSFINtech’s innovative treasury solution, you had a chance to turn those FX losses due to unfavourable currency movement to your company’s advantage and to close your positions and hedges at the right time, and to open / enter new positions at better rates.

Now, with the valuation of equities looking expensive, and the world political environment being uncertain, according to some fund managers, a downward correction for the INR is in sight.

 

With the latest AU Deloitte Global Treasury survey wherein 52% of the over 200 treasurers felt that FX volatility was the key challenge to organisations, can you afford to track and possibly negate this volatility and the movement just by using legacy systems of spreadsheets to manage your FX exposure?

 

With the possible downward USD/INR movement, increased volatility is expected in the next 12 months in FX market and in INR. How about using the current flat volatility and the possible future price movement coupled with a spike in volatility to your company’s advantage! Let IBSFINtech’s Innovative & Integrated Treasury Management Software do the FX management work for you to help you maintain the right currency exposure at the right rate.

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