Many companies, particularly importers, now prefer short-term, simple hedging tools such as monthly plain-vanilla forwards, and one-month forward implied yields have risen to about 8.13%.
As Naveen Mathur from Anand Rathi puts it, these defensive strategies help businesses shield their profits when oil prices climb or money flows out of the country.

Importers are covering their risks quickly, but exporters are adopting a more calibrated approach, with some deferring fresh hedges to benefit from favorable currency movements.
Big companies can afford a mix of options and forwards (costing about 2.5% to 3%), while smaller firms often can't keep up due to tighter limits.
Meanwhile, the Reserve Bank of India is tweaking rules so banks have more freedom to help with hedging and overseas trading, making it a dynamic time for anyone dealing with foreign currency.