Indian Rupee Rate (INR) Indian Rupee Forecast
Morning Briefing

Structure of the Indian Rupee Market

Hedging Instruments

To be fair, the Indian corporate sector has very few avenues and instruments to protect itself from risk on the Rupee - Dollar exchange rate.

The Forward Contract is the one and only instrument available for the purpose - there are no INR - USD Options or Currency Swaps or Interest Rate Swaps. The forward market too, is liquid only upto 6 months forward. The number of deals with tenors upto 12 months is increasing, but the market is still not fully developed or liquid.

With the RBI taking steps to develop and energise the debt market; with local interest in debt growing once again in the aftermath of the stock market collapse in 1995; and relaxation in RBI rules regarding foreign debt, it is hoped that over the next two years the stage will be set for introduction of INR - USD Derivatives. In context : Sodhani Committee's Debt Market reforms and recent ECB guidelines.

Back    Next

Indian Rupee Market | FX Thoughts | Economic Calendar | Graphs Gallery | Colour of Money | Money Markets | Research | Risk Management | Government Policies | Free Data | Your Queries | Testimonials | Links | About Us | Site Map
Copyright Kshitij Consultancy Services
Suite 2G, 2nd Floor, Tower C
Hastings Court
96, Garden Reach Road
Kolkata - 700 023
00-91-33-24892010/ 24892012
Location Map
Site created by
Manaskriti Software Solutions