Trading in the Indian currency is swiftly gaining popularity in Dubai. Futures contracts of the rupee against the dollar listed on the Dubai Gold & Commodity Exchange (DGCX) have doubled in the first two months of this calendar year. The previous two years saw a five-fold increase in these contracts.
Dubai is a major exporter of oil, gold and diamonds to India and the frenzy to hedge against rupee risk is such that soaring currency trading in the emirate could pose serious competition to volumes on Indian exchanges in the next few years, say market players.
On February 22, the number of rupee-dollar contracts touched a record 12,499 on the DGCX, breaking the previous record of 11,968 on January 5. On an average, over 8,000 rupee-dollar contracts are traded daily on the DGCX, churning out Rs 1,500-1,600 crore in volumes.
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