USDINR

USDINR is the currency pair consisting of the US dollar and the Indian rupee. It represents how many Indian rupees are required to buy one US dollar. The standard quote used in most onshore markets is INR per USD. An inverse quote in USD per INR also appears in some contexts, but USDINR typically refers to INR per USD.

Trading occurs in spot, forwards, and futures markets. In India, currency futures are traded on exchanges such as the National Stock Exchange (NSE) and the Multi Commodity Exchange (MCX), with standard contract sizes often USD 1,000. The spot rate is determined in the global interbank market, with domestic banks and financial institutions quoting prices in India. The Reserve Bank of India may intervene to curb excessive volatility in the USDINR pair, and other policy actions can influence the rate.

Key drivers include U.S. dollar strength, as reflected in the dollar index; Indian monetary policy, including policy rates and guidance from the RBI; domestic macro data such as inflation, growth, and balance of payments; oil prices; and capital flows. A widening current account deficit or higher imports can pressure the rupee, while capital inflows and higher interest rates relative to the U.S. can support it.

Market participants use USDINR for hedging USD exposures, pricing of imports and exports, and speculative trading. The rate can be volatile in response to domestic and global events, and liquidity can vary across tenors and during economic announcements. Data sources include banks, financial data providers, and exchanges; quotes are updated in real time on trading platforms and news feeds.