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Virtusa buys multiple foreign currency forward contracts

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Virtusa buys multiple foreign currency forward contracts

Virtusa Corp. bought multiple foreign currency forward contracts that are designed to hedge fluctuation in the Indian rupee against the U.S. dollar and U.K. pound sterling.

The U.S. dollar contracts have an aggregate notional amount of about 2.7 billion rupees, or about $38.3 million, and have an average settlement rate of 69.80 rupees.

The U.K. pound sterling contracts have an aggregate notional amount of approximately 1.3 billion rupees, or about £13.9 million, and have an average settlement rate of 94.67 rupees.

These contracts will expire at various dates during the 18-month period ending Dec. 31, 2019. The company will be obligated to settle these contracts based on the Reserve Bank of India's published Indian rupee exchange rates.

As of June 8, US$1 was equivalent to 67.54 Indian rupees.