The extension of foreign exchange trading by an hour from Monday affords local participants reaction time to US data released in the early hours, allows banks to meet late remittances, aids squaring off of dollar positions by traders and eases last-hour volatility. | |
| "Players could use the US data on capital inflows today, which was lower than expected," a forex trader said. |
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| Corporates in the US wanting to hedge their rupee exposure will also get an extra hour to hedge their positions. |
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| The more is seen enhancing the depth and liquidity of the market through increased integration with other forex markets. |
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| "It's too early to see the impact. But definitely a beginning has been made toward integration with different time zones," said a banker. |
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| Forex dealers said the 60 minutes will help augment integration with the Far East, West Asia and the Western Europe markets. |
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| Prabal Banerjee, treasurer, Mahindra & Mahindra said the move aligns the Indian forex market with counter parts in Zurich, Frankfurt, Amsterdam and London. The time difference between India and these market will not hamper trade now, he said. |
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| Some of the western European markets were yet to open, or were in the initial hours of trade when the Indian market closed at 4 p.m till last week. |
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