New Delhi, Jan. 26 -- Indian Railway Finance Corp (IRFC) is reworking its foreign-currency borrowing mix, exploring a plan to swap part of its dollar-denominated loans into Swiss francs to limit foreign exchange losses and lower funding costs amid a free fall in the rupee against the greenback. The move reflects how the government's rail financier, which has nearly $8 billion in overseas exposure, is responding to currency volatility even as it reshapes its business beyond funding the Indian Railways.

Nearly 70% of IRFC's forex loans are dollar-denominated and a 6% fall in the Indian rupee against the US currency over the last 12 months has prompted the company to explore these steps, chairman and managing director Manoj Kumar Dubey told...