Your Questions About Forex Rates

Carol asks…

What factors influence the spot and forward exchange rates in the forex market?

Basically an understanding of what goes behind the decisions of selecting to go for a spot rate of exchange or a forward rate of exchange.

kenspong answers:

They depend on the interbank interest rates of the 2 currencies
at the time of the deal is booked.

Steven asks…

Need RBI Forex rates(USD to INR) for financial Year 2007-2008?

Hi,
I need help with getting historical Forex data(USD to INR) for financial Year 2007-2008(1st April 2007 – 31st Mar 2008). I need this desperately for accounting. Can anyone please help me with some good and reliable website link?

kenspong answers:

For current rates follow the link
http://www.forexrealm.com/forex-rates/
I am i cannot find it for financial Year 2007-2008..

Ruth asks…

Commodity Futures and Forex Interest Rates What’s the Difference?

I have been trading commodity contracts for about a year and have done good for myself. However, I have been considering trading forex as well. I know that interest rates affect the forex markets depeding on the pairs traded.

Additionally, I know that interest rates affect weather you receive/payout on certain pairs, however, im not sure with rate drives this.

Also, I came across an excellent blog post regarding
the bond futures market http://www.aarontrade.com/commodityfuturestrading/?p=25

Are forex interest rates affected by this 30 year rate or something else? If bond futures do enter a long-term bear market how does this affect forex interest rates?

Thanks for any potential help
Ryan

kenspong answers:

Definitely interest rates (plus other things) affect foreign exchange levels. The thing is you need to look at both countries interest rates. If you’re trading US Dollar vs Canadian Dollar, you need to look at US and Canadian rates.

If one of the two countries (say the US) raises it’s rates, some people will move their money into that countries currency (USD) and that currency should strengthen.

If you’re trading forex futures you should look at the interest rates in the two countries around the time of your future’s expiry. I.e. If you’re trading a future that expires in 3 Months, you should look at the 3 month interest rates in both countries (so you could look at the interest rates of bonds maturing in 3 months, or cash deposit rates for 3 months).

I.e. I believe you will find that the price for a USD->CAD forex future expiring 3 months from now is the current USD->CAD fx spot price (1.13) + (USD 3M rate – CAD 3M rate)*3/12. Which would end up giving you something like 113.2 .

Thomas asks…

The canadian Forex Rates?

Is there a good website to check the current prices of gold, silver and other bullion, forex rates in canada??

kenspong answers:

These are the sites I would check to find out gold/silver and currency conversion: see below in sources

John asks…

Indian forex rates?

Which are the best websites for getting updated information on Indian forex rates?

kenspong answers:

Kitco.com is a very useful site.

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