An Indian firm expects to receive US dollars after three months. Anticipating a possible appreciation of the Indian Rupee, the firm wants to protect the domestic value of its receivables. Which action in the foreign exchange market is most appropriate?

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Economics · International Finance

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Entering into a forward contract to sell dollars

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Answer 1

Entering into a spot purchase of dollars

Answer 2

Entering into a forward contract to sell dollars

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