Global banks play hedge card after RBI blow on rupee bets

Some of the large foreign banks are trying a clever ploy to soften the blow from Reserve Bank of India’s (RBI) sudden clampdown on speculative bets against the rupee.They are understood to have passed off some of the arbitrage deals, which were hit by the recent regulatory directives, as transactions done to hedge the capital received from overseas parents, two persons told ET.Arbitrage deals are cut to profit from price differences in the local foreign exchange forward market and the offshore m...