Currency Trading in India: Explore 3 Most Traded Currency Pairs in India

In India, when it comes to trading currencies, three pairs are quite popular due to higher traction from traders.

The first one is the USD-INR, where the Indian Rupee meets the US Dollar. Then there’s the EUR-INR, pairing the Euro with the Indian Rupee. Lastly, the GBP-INR brings together the British Pound and the Indian Rupee.

These three pairs are crucial for currency trading online. Let’s talk about these pairs in detail.

What are Currency Pairs in Forex Trading?

Currency pairs in forex trading represent the comparison of two different currencies, showcasing their exchange rate. 

Each pair has a base currency and a quote currency. 

The base currency is the first in the pair, and its value is quoted against the second currency, known as the quote currency. For example, in USD:INR, USD is the base currency and its value is quoted against INR.  

Currency derivatives in India are traded on Indian exchanges like BSE, NSE, and MCX-SX. Trading hours are from 9 AM to 5 PM, Monday to Friday. Whereas, trading in cross-currency pairs is available from 9 AM to 7:30 PM.

Understanding these pairs is crucial for trading in the foreign exchange market and making informed decisions.

3 Most Traded Currency Pairs in India

There are only 7 pairs of currency traded in India that you can trade in the derivative market. From that, these three pairs are traded the most.

1. USD-INR (U.S. Dollar to Indian Rupee)

The USD/INR is a very popular currency pair in India and is legally traded. According to data from the National Stock Exchange (NSE), it is the most actively traded contract on the NSE. 

In fact, 96% of the ₹159.9 trillion turnover on the NSE for currency derivatives contracts from April to August was attributed to the rupee-dollar pair. 

This pair is favored because a significant portion of India’s trade and business is conducted in USD.

2. GBP-INR (British Pound to Rupee)

This is a significantly important currency pair in India’s foreign exchange market. GBP:INR is the conversion rate between the Great Britain Pound (GBP) and the Indian National Rupee (INR). 

The GBP-INR contract is widely traded and is the second most popular currency contract after USD-INR. The basis for this contract is the exchange rate, indicating how much one British Pound is worth in Indian Rupees.

3. EUR-INR (Euro to Indian Rupee)

The EUR and INR currency pair reflects the exchange rate between the Euro and the Indian Rupee. It is one of the most actively traded pairs in India. This exchange rate is significant for industries such as software, jewelry, gems, and heavy machinery. 

The EUR/INR pair usually follows the same direction as the Euro against the dollar. If the Euro goes up, EUR/INR goes up too, and if the Euro goes down, EUR/INR goes down as well.

Conclusion

For currency trading online In India, understanding the nuances of the USD/INR, EUR/INR, and GBP/INR is crucial. For a smooth trading experience in currency derivatives, check out the Dhan trading platform. It focuses on major currency pairs for derivative trading, allowing you to trade seamlessly and stay updated on market trends.