MUMBAI, Feb 13 Reuters Some Indian exporters are stepping up hedges of their future euro receipts on bets of limited upside to the rupee after the common currency39;s recent rally, analysts said.

The EURINR pair soared to 90.44 on Feb. 2, just ahead of the European Central Bank meeting, its highest level since April 2021. It was last trading at 88.30.

There is an urgency among exporters to hedge following the euro39;s rally to above 88, a treasury sales official at a private bank said.

In the portfolio that our bank manages hedging has gone up for around 70 of customers, said another treasury sales official at a private bank who advises medium to small enterprises. It had nearly dried up about two months ago, the official added.

The EURINR premiums are almost twice the USDINR premiums, encouraging exporters to take longerterm hedges.

The EURINR 1year annualised premium is at 4.20. This means that an exporter who is hedging at the current spot rate of 88.30 would have a 1year hedging rate of nearly 92.

Exporters to Europe have added 3040 hedges on receivables from their outstanding books, said the first treasury sales person quoted. We have been pushing clients and they39;ve been open to it.

The EURINR cross rate jumped almost 11 in the December quarter, thanks to a plunge in the dollar index and a weaker rupee.

EURINR saw a large movement…. and if you add the premium , it is a very good rate to hedge currently for exporters, said Jayaram Krishnamurthy, head…