Infosys CFO V Balakrishnan expects rupee to weaken, therefore company to maintain short term hedging policy

Infosys CFO V Balakrishnan expects the rupee to weaken and to be under pressure for sometime to come. Therefore, we are maintaining our policy of hedging for the short-term, he told ET. The rupee is currently on an appreciating trend but Mr Balakrishnan said globally the dollar was strengthening and seen as a safe haven because of Eurozone crisis, UK being in recession and slowdown in China and other emerging markets. In addition, oil prices were not coming down and if India's fiscal deficit continued to be high then he said the rupee would weaken.

The rupee is currently rising against the dollar after steep 10% fall.

Crisil Research has forecast the rupee will appreciate to around 50 to the dollar by March 2013 end. The research firm said there was a two-in-three chance of this happening, with the alternate scenario (one-in-three chance) being the rupee settling at 55-57 to the dollar by March 2013 end.