Risk Desk tools
Currency exposure calculator
See what’s actually at risk once hedging is accounted for, and what a plausible rate swing would cost you in rupees.
Formula
Unhedged Exposure = FX Spend × (1 − Hedge %) × Rate
Cost Impact = Unhedged Exposure × Rate Move %
Cost Impact = Unhedged Exposure × Rate Move %
Exposure details
Foreign currency spend
Total spend in the foreign currency, e.g. USD
$
Current exchange rate
Foreign currency to INR
INR
Hedge coverage
Share of this spend already locked in by a hedge
%
Hypothetical rate move
Test an adverse move in the exchange rate
%
Cost impact of rate move
₹0
Unhedged exposure–
INR spend value–
Hedged amount–
Hedged vs. unhedged spend
Test a few different rate move scenarios — a mild 2–3% move and a more severe 8–10% move — to understand the range of outcomes rather than anchoring on a single forecast. If the worst-case cost impact would meaningfully affect margin, that’s the case for increasing hedge coverage rather than waiting to see what the market does.
Frequently asked questions
What is currency exposure in procurement?
The portion of foreign-currency spend that isn’t hedged, meaning its rupee cost rises or falls with exchange rate movements before payment is settled.
How does hedge coverage reduce exposure?
A hedge locks in an exchange rate for a portion of spend in advance, typically via a forward contract, leaving only the unhedged portion exposed to future rate moves.
How do I estimate the cost impact of a rate move?
Multiply unhedged foreign currency exposure by the percentage rate change you want to test, then convert to rupees at the current rate.
Is this currency exposure calculator free to use?
Yes. It runs entirely in your browser, needs no account, and nothing you enter is stored or transmitted.