Content area
Full Text
Bombay-based Associated Cement Company-India's tenth largest corporation-is considering entering into a forward to hedge currency exposure from a USD63 million loan which expires in seven years, according to K. Ravindran, treasurer in Bombay. ACC wants to hedge its exposure to purchasing dollars to repay the loan, he said. The company did not hedge when it took out the loan because of high forward rates. The rupee was trading at an 8% discount to spot on a six-month forward basis and the Reserve Bank of India has been intervening to reduce the discount.