In early trading in the forex market, the Indian Rupee (INR) breached the Rs. 43 to the US dollar mark. With the crude oil prices rising steadily week on week, the Indian Rupee is expected to further depriciate against the USD. For export houses which had aggressively hedged their positions in the forex derivatives market, this spells disaster as they would now make huge derivative losses. Companies which chose not to go for forex derivative hedging strategy are now passing on the benefits acrued from the depriciating rupee back to the customer. Hence companies which have not hedged have a clear competitive advatange over their competitors who have gone in for hedging.