Hi,
Does anyone know why USD/INR is trading with low volume? I came across an article—could this be the only reason?
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I think no new position are allowed.
Maybe ask ChatGPT/ Gemini? This is old news so they will have insights.
This is primarily due to last year’s changes by RBI in currency markets.
As per RBI guidelines, traders need to have exposure to the underlying currency to trade in currency derivatives on the stock exchange.
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| Date | Average Daily Turnover (NSE Currency Options) |
|---|---|
| March 2024 | ₹1.56 lakh crore |
| May 2024 | ₹3,408 crore |
| July 2025 | ₹3,000–7,000 crore (approximate) |
Yes, agree with the original article
and what Meher shared above.
Another news article from April 2024 that describes the massive fall in volumes that coincided with (i.e. very likely were in response to) the updated regulations.
Yet another instance of how folks “went crazy” with financial instruments,
and were no longer using them for the original purpose they were developed for,
and had to be explcitly regulated to control their greed. 