After Trump's win, Advisors cautioned Indian firms to be wary of forex risks

The people of the United States made the decision. Donald Trump, the Republican Party candidate, is now the 47th President of the United States. But Trump's victory has some negative consequences.

The bankers and experts are, urging Indian firms to manage their FX risks more cautiously and proactively. The Indian rupee's period of relatively low volatility may come to an end now that Donald Trump has become president of the United States once more.

Abhishek Goenka, founder and CEO of forex advisory firm IFA Global, said importers can opt for option hedges vis-à-vis forward hedges, depending on their risk profile.

“For the extremely conservative ones, we are suggesting that if you have confirmed payments to be made, then can consider a combination of options and forwards.”

Sonal Varma, Chief Economist, India, and Asia ex-Japan, Nomura, said while the net impact of Trump 2.0 is going to be weaker growth across the board, there are always winners versus losers within the global bloc. She also said, that Asia, like China, South Korea, and Taiwan, which are more negatively impacted.

Abheek Barua, Chief Economist at HDFC Bank said in a statement

The rupee is “likely to enter a period of somewhat increased volatility with the risk of larger moves over the coming months,”

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