Indian companies are hedging against rupee weakness at the fastest pace on record, new data shows. Importers bought a record $77 billion in currency hedges in September, up 80 percent from a year earlier, as the rupee slid toward all-time lows. Total hedging volumes from January to September reached $576.6 billion.

The rupee has fallen about 6.5 percent this year, the worst performance among major Asian currencies. Heavy selling by foreign investors, who have dumped $29 billion in Indian stocks this year, has kept the pressure on. Analysts polled by Reuters expect the rupee to trade at 96.10 to the dollar in three months and 96.50 by end-March.

The hedging fever reflects corporate fear that the Reserve Bank of India cannot hold the line forever. Exporters are also locking in rates, though importers dominate the flows. Strategists say the hedging rush itself is a sign of market stress: when everyone wants protection at once, the cost of that protection rises, adding to the pressure on corporate balance sheets.