India’s currency futures market may grow by 15 per cent to 25 per cent in the next 12 months, according to NSE.
“The realization has increased that it is not only the interest rate that is a factor in an individual’s economic life but also the exchange rate,’’ Ravi Narain, chief executive officer of NSE said. “It will be a slow start,’’ with potential for daily trading volumes to reach $35 billion, he said.
“This is the appropriate time to launch currency futures as a significant segment of the market has been left exposed to exchange-rate risk for too long,’’ said Joseph Massey, chief executive officer of the Multi Commodity Exchange. MCX got approval to offer trading in the futures on August 25, but Massey declined to say when his exchange will start providing the products.
