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Forex and currency
Currency pairdo currencies ka bhav, jaise USD/INR
A quote showing how much of one currency buys one unit of another, such as USD/INR, the exchange rate between the US dollar and the rupee.
A currency pair expresses the value of one currency in terms of another. In USD/INR, the first currency, the US dollar, is the base, and the second, the rupee, is the quote. A rate of 84.20 means one dollar costs ₹84.20. When the rate rises, the rupee has weakened; when it falls, the rupee has strengthened. Currency prices move on interest rate decisions, inflation, trade balances, oil prices and RBI intervention. In India, retail traders can trade INR pairs such as USD/INR, EUR/INR, GBP/INR and JPY/INR through exchange-listed currency derivatives on NSE, BSE and MCX-SX. Trading pairs like EUR/USD through foreign online brokers, or using LRS funds for margin forex, is not permitted for Indian residents under RBI rules. Learn the mechanics on the legal exchange contracts, where the counterparty and settlement are regulated.
Related terms
Lessons that use this term
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