Indian corporates turn to swap markets as dollar funding evaporates

The plunging rupee and increasing risk perceptions of Indian companies have made it expensive for them to access US dollar funding with some major corporates turning instead to the swap markets to refinance their liabilities and fund their overseas operations.

The rupee plunged to a record low of nearly 69 versus the US dollar at the end of August as poor economic fundamentals saw it bear the brunt of an emerging markets rout following US Federal Reserve statements about reducing quantitative