Cross Currency Trading Picks Up In India Thanks To Greater Corporate Exposure

BANKS

Cross currency trading is "coming of age" in India, with a substantial increase in turnover being fueled by greater corporate exposure in non-dollar currencies, say sources in India. The need to hedge these exposures by both banks and corporates, as well as the relative stability of the rupee against the US dollar, are the primary factors fueling this trend.

FX data released by India's central bank, the Reserve Bank of India (RBI), confirms this shift. Total cross currency turnover reached $4