Infosys Sticks to Light Hedging Stance
BANGALORE - Software exporter Infosys Ltd. expects the Indian rupee to resume its downtrend against the U.S. dollar and is therefore sticking to its policy of keeping currency hedges light.</br></br>The company continues to hedge part of its expected revenue for two quarters ahead, its chief financial officer V. Balakrishnan said Thursday. "We are not going beyond that because in a volatile environment, it's better to take a short-term view."</br></br>The comments from India's second-largest software exporter by revenue underscore the cautious approach of companies in the sector toward hedging after the greenback surged to an all-time high of 54.295 against the rupee on Dec. 15.</br></br>The rupee fell nearly 16% against the dollar in 2011, but has already recovered about 3.0% since Jan. 1 as authorities have supported the local unit through measures to curb currency speculation and increase dollar flows. The central bank has also intervened directly in the market.</br></br>A weaker local currency swells sales in rupee terms for companies like Infosys, who get most of their revenue by providing software and related services to customers in the U.S. and Europe. The rupee was a major factor in Infosys Thursday reporting a 31% rise in its October-December quarter revenue to 92.98 billion rupees.