Assessing and managing currency rate risk exposure is necessary to reduce a firm’s vulnerability to major exchange rate swings, which can hurt profit margins and assets. This article uses the panel regression model to assess enterprises’ exchange rate risk. Companies, especially non-financial ones, must comprehend how they are affected by global exchange rate swings. Indian enterprises’ foreign exchange exposure, its causes, and potential adverse situations will be examined in this study. In 2021–2023, 115 non-financial companies were analysed using a panel data methodology with fixed effects to determine their level of exposure to exchange rate changes and stock returns. Firm-sensitive variables like export earnings, purchases, net capital flows, and firm size may also affect foreign exchange exposure.