Rupee futures volume in Dubai climbs 68 per cent in September
13 Oct 2007
The value of the total number of contracts traded on DGCX since inception now stands at $40.53 billion, of which gold contracts account for $20.87 billion.
Traders switched to currency futures and preferred to tread cautiously in the commodity markets following increased price volatility that drove gold, crude oil prices to their highest levels in several decades, a statement from the exchange said.
The exchange began trading the world''s first Indian rupee contracts in June.
Gold futures prices recorded a massive jump of nearly 10 per cent, climbing to their highest levels in almost 28 years while Euro jumped by 4.45 per cent to reach an all-time high against the US dollar. Silver futures registered a big jump of 13.61 per cent during September.
Of the total traded volume (68,558 contracts) during September, gold futures remained in the forefront, contributing 42,323 contracts.
The British pound contract led the table accounting for a volume of 21,783 contracts out of a total of 25,692 contracts traded.
Euro futures volume saw a rise of nearly 7 per cent over the previous month while the traded volume in the Indian Rupee futures leapt by 68 per cent.
An unprecedented foreign investment flow into the rapidly growing economy has pushed the rupee higher into an "uncomfortable" zone, according to finance minister P Chidambaram.
"We must find ways to manage a competitive exchange rate without hurting investments," Chidambaram told a conference in Mumbai. The rupee is in an "uncomfortable zone," he said.
The rupee''s rise was aided by a tide of overseas money into domestic shares following a cut in US interest rates last month.
The rupee finished the week (Friday) flat at 39.3 against the dollar, a nine-and-a-half year high. Some analysts expect the rupee to touch 38 to the dollar or even lower by the middle of next year.
The rupee has already risen by over 11 per cent this year against the dollar, making it Asia''s best performing currency.
The Reserve Bank of India has been buying dollars to check the rupee''s rally and protect slowing exports.
The rupee is expected to gain further as foreign investors buy shares and pour money into plants and infrastructure projects to exploit the booming economy.
