How retail came to life in currency derivatives during war

Retail participation in India's exchange-traded currency derivatives (ETCD) segment jumped during the West Asia conflict, with retail share of NSE futures turnover rising from 5.9% in March to 11.1% in May as investors hedged unhedged forex exposure. ETCD futures average daily turnover climbed 65% year-on-year to around 5,535 crore rupees in the current fiscal through 25 June. The rupee plunged 6.5% from 91.07 on 27 February to a low of 96.96 on 20 May as crude surged 39% to $101 a barrel, prompting activity under an RBI circular allowing trades up to $100 million with documented underlying exposure.