
MANAGEMENT OF FOREIGN EXCHANGE EXPOSURE AND RISK 187
Questions
After carefully studying the given data, answer the following
questions:
1. What could be the reasons for the appreciation of the
INR against some currencies and the simultaneous
depreciation against others?
2. Against which currency or currencies is the INR more
volatile? Why?
3. Suppose you are an exporter and are given a choice of
invoice currency. Which currency would you prefer for
invoicing? Why?
4. As an importer, which currencies would you like to
include in the currency cocktails for invoicing? Why?
Further Reading
1. Michael Adler and Bernard Daumas, “Exposure to ...