Economics
Hedging Surge Prompts India Central Bank Inquiry on Rupee Moves
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India’s central bank, concerned about the fastest growth in currency derivatives trading in more than three years, is asking overseas funds to prove they aren’t speculating on the rupee.
Futures and options trading involving the currency rose 47 percent to a daily average of 387.7 billion rupees ($6.4 billion) in June on the National Stock Exchange of India Ltd., the biggest jump since January 2010. Exchange-rate volatility jumped the most in almost two years during the last quarter as the rupee slid 8.6 percent, Asia’s worst performance. The spot rate plunged to an unprecedented 61.2125 per dollar today.