Firms doing business abroad are being warned to consider buying currency in advance after the Indian rupee fell 20 per cent against sterling in six months, causing uncertainty for UK firms.
Currency exchange giant Western Union said it had seen a huge rise in British small businesses forward-buying rupees over the summer with a 90 per cent increase from May to June.
Western Union’s Kerry Agiasotis said: ‘The rupee has hit all-time lows against sterling. India is an important trade partner for the UK and it is vital firms use this opportunity to look at cashflow and maximise their purchasing power.
Rajan Jolly is operations manager at Naturetrek, a firm offering wildlife treks.
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Set up in 1985, it employs 25 staff in Alresford, Hampshire, and 100 tour leaders in 85 countries.
Naturetrek has always paid for goods and services in US dollars, but two years ago their suppliers in India began quoting in rupees, with payment in US dollars.
This meant Naturetrek had to manage two foreign exchange deals, which pushed up costs. Having persuaded suppliers four months ago to accept rupees, it recently began forward-buying the currency.