The present study has extended the analysis of Dash et al (2008) in comparing the performance of different hedging strategies, approaching the problem from the point of view of exchange rate dynamics, using a model for exchange rate movements. Based on the results of the simulation of this...

In the world of globalization, most business enterprises operate in more than one country, receiving foreign currency for exports and paying foreign currency for imports, and this exposes them to foreign exchange risk. Each entity and/or individual that has exposure to foreign exchange rate risk...

The last twelve months have seen the Indian Rupee (INR) soaring to new highs against the Dollar (USD), and subsequently falling to new lows. This has been a key concern, with the INR rising notably from around INR 47/$ level in July 2007 to its level around INR 38/$ in September 2007, and back...