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Repayment is after a set period and fixed at a forward exchange rate determined by the gap in interest rates on the two currencies.

This reflects both tighter American money markets and a breakdown of “covered interest parity”, the principle that the difference between spot and forward exchange rates should mirror the interest-rate differential between the currencies.

Like many of its peers, only just over half of Nippon Life’s foreign bonds were hedged with forward exchange contracts and the like.

The company increased its raw materials inventories while the rand was strong, and is now buying forward exchange rate contracts to help protect against further declines.