Citigroup’s Indian clients shift focus to Rupee volatility

Citigroup says its Indian corporate clients increasingly expect the rupee to keep weakening and are seeking FX products that can both hedge downside and let them participate in larger currency swings. The shift reflects a more bearish medium- to long-term view on the rupee, with clients linking depreciation expectations to interest-rate differentials. For markets, the takeaway is rising demand for structured FX solutions and potentially greater hedging activity in the India currency market. The article suggests sentiment has moved from simple protection toward volatility-focused strategies that benefit from larger moves in the currency pair.