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Stock impact report

RBI-spurred rupee rally sparks importer rush, hedging costs soar most since global financial crisis [Yahoo! Finance]

Shinhan Financial Group Co Ltd American Depositary Shares (SHG) 
US:NYSE Investor Relations: shinhangroup.co.kr/en/invest/main.jsp
Company Research Source: Yahoo! Finance
positions, sparked a scramble among ?importers to lock in dollar exposure, pushing hedging costs up by the most since ?the 2007-2009 global financial crisis. One-year dollar hedging costs climbed 30 basis points to 3.96% on Monday, building on a ?70-bp surge on Thursday - which was the biggest single-day jump since the global financial crisis. Indian FX and money markets were off on Friday. Bankers attributed the surge in hedging costs to importers rushing to cover dollar payments after the RBI-triggered rupee rally. Thin forward market liquidity amid uncertainty ?over the fallout of the ?RBI's measures further amplified the move, along with a shift of offshore positions to the onshore market. The rupee rallied nearly 2% on Thursday to ?near the 93 to the dollar level after the RBI took steps to rein in arbitrage and speculative activity by corporates. This move came as restrictions on position sizes of banks had a ?limited impact ?due to the arbitrage activity of corporates. Show less Read more
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