Currency rates

Hi,

I am new in currency trading and had a basic query. I can see that USD(INR) closed at 61.53 today at NSE, however at night I saw the flashes at ET NOW that USDINR is at 61.35. Which rate is ET NOW quoting? Is it connected to the NSE rate? Is there a chance of USDINR opening gapdown on Monday morning? Any help regarding the query would be greatly appreciated.

As no one has replied I will attempt to answer your question

I do not know which rate ET Now is quoting hopefully some other member will tell you.

Now regarding your question about the gap. I do not trade USD/INR however gaps are very commonplace if you trade on an exchange.

Gaps are not commonplace but still do occur from time to time as weekend gaps if you trade OTC forex.

Reason is forex trades 24 hrs a day 7 days a week you can even place trades on weekends although spreads will be very high due to low liquidity as there are fewer market participants

So what happens on an exchange is say trading opens at 09:00 and say trading closes at say 17:00 now although the exchange is closed trading on the OTC market still continues and prices will move by the time the morning comes and the exchange opens for trading again at 09:00hrs the opening price will be at (or very similar) to the OTC forex price so this appears as a gap compared to the closing price on the exchange

In essence there is no "gap" at all it just appears that way because the exchange was closed for trading and when it opened prices which were trading throughout the night have moved away from the last traded price on the exchange. However when the exchange opens the opening bids/asks will be very close to the current OTC Forex price and this appears as an overnight gap.

Occasionally the opening price on the exchange can also be different from the current OTC forex price but this phenomenon is rare and even if it does manifest it will be exploited by arbitrageurs who will step in and the price will return to somewhere near the current OTC forex price.

My english is not very good but hope i was able to explain somewhat and answer your question

I do not know about this particular channel/case... generally news channels quote the RBI reference rate and on the exchange you see the 'futures' rate.. hence the difference..


regards

also to check where usd/ euro would open next day.. you can check the dollar index in the US markets at night;

regards

If I'm not mistaken, 61.53 @NSE is the futures price and 61.35@ET is the spot rate. Which date you are referring to? Expect a positive opening, as charts says so.

That was Spot price

Even you can check Spot price during market hours on your screen (but you can't trade spot)

Add Scrip : underlying currency >> USDINR

Thanks everyone - Yeah I was indeed confused between the spot rates (that ET now was showing) and the Futures rate which I was trading. Played it for a week and now I am quite clear. Thanks again