Forex rates

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Titli Mukherjee (Querist)
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11 February 2013 In Forex sppse DM/$ 0.4040/0.4041
or
1$=rs 47.85/47.90
now m having pblm regarding whose rate is given.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 February 2013 Dear Titli,

The forex rates are quoted in this manner INR/USD - 47.85/47.90. This means, the bank will buy one dollar for Rs 47.85 (bid/buy), and sell one dollar for 47.90 (ask/sell).

Similarly, to buy one dollar, the bank will give you .4040 DM (bid/buy) and take .4041 DM to sell 1 dollar (ask/sell).

The whole idea is that the currency seller would buy at a lower price and sell at a higher price and keep the difference as margin/profit.

Though your message doesn't specify, it is possible that you are looking for the cross rates. For that follow the following process:

You pay 47.90 to buy 1 USD. and Then you sell 1 USD to buy .4040 DM. So the cross rate INR/ DM is 47.90/.4040 or 118.5643

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CA Lokesh Pokharna

CA Lokesh Pokharna (Expert)
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11 February 2013 generally per unit counted of denometer.... but you ahve to keep practical knowledge also.....sometimes we have take rates as per our g.k. which is market based rates.

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