Prof. Jayanth R. Varma's Financial Markets Blog

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Prof. Jayanth R. Varma's Financial Markets Blog, A Blog on Financial Markets and Their Regulation

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Thu, 02 Dec 2010

Where is the rupee-dollar market?

In two blog posts three months ago, I put together data from the BIS and the RBI to suggest that half of the rupee-dollar market is outside India. Now we have the data from the BIS. Table D.6 gives the location wise break up of the rupee-dollar market: 50% is in India, 16% is in Singapore, 12% in UK, 11% in Hong Kong, and 9% in the US with the balance scattered across four countries (Switzerland, Australia, Japan and Canada) each with less than 0.5%. The offshore market exceeds $20 billion a day.

One of the reasons most people underestimated the size of this market is that they were looking only at Singapore, while the market is spread across several locations.

Posted at 21:09 on Thu, 02 Dec 2010     3 comments     permanent link


AP wrote on Sat, 04 Dec 2010 14:11

Re: Where is the rupee-dollar market?

The most fragile thing to happen in forward is when an unsual event happens at an odd hour and sitting in india you catch the momemnt when there is little to take action and market has already reacted. The globalisation let's new gen managers to wake up 24 7 to squeeze the butter. Unfortunately arresting the such event and curtailing such demand on one side is turning to be a challenge for regulators as bid players with high money can spin demand and let it fall too.

website wrote on Tue, 12 Mar 2019 14:26

Re: Where is the rupee-dollar market?

great and nice ahsehraswerawerawreaw