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Our Bureau

Mumbai, Oct. 22 With the rupee touching a new low on Wednesday, volumes in currency futures trading on the bourses hit new highs.

A total of 2.06 lakh contracts were traded on the NSE on Wednesday, which is the highest number traded since the day currency futures commenced, on August 29.

The total turnover on NSE amounted to Rs 1,026 crore.

NSE last recorded such high volumes on October 10 when the rupee dipped to Rs 49. A total of 1.92 lakh contracts were traded on that day, accounting for a total turnover of Rs 936 crore.

MCX-SX’s currency futures, launched on October 7, also saw record volumes traded on Wednesday.

A total of 1.9 lakh contracts were traded. Total turnover was Rs 943.7 crore. On the first day of trade on MCX-SX, a total of 59,952 contracts were traded accounting for a total turnover of Rs 287.49 crore.

While currency futures on both the NSE and MCX-SX saw record volumes, trading was rather subdued on the BSE, where only 952 contracts were traded on Wednesday for a turnover of Rs 4.71 crore on Wednesday.

After its launch date of October 1, currency futures traded on the BSE have been on a steep decline. On the launch day, a total of 65,685 contracts were traded for a turnover of Rs 307 crore.

Investors expect the rupee to decline further which is why the currency futures are seeing such large volumes, explained marketmen.

“The rupee, at the moment, is trading at an all-time low. Many investors have now resorted to going long on currency and short on equity, which is what we are also advising our clients at the moment,” said Mr Alex Mathew, Head of Research at Geojit Financial Services.

The Sensex on Wednesday fell 513 points or 4.81 per cent.

More Stories on : Derivatives Markets | Stock Exchanges | Forex

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