Definition
EURINR
EURINR is the exchange rate of the euro against the Indian rupee, a cross pair derived from EURUSD and USDINR rather than traded directly in the interbank dollar market.
EURINR matters to Indian importers of European machinery, pharma inputs and luxury goods, and to firms with euro-denominated revenue. Because it is a cross rate, EURINR roughly equals EURUSD multiplied by USDINR, so it can move even when USDINR is flat if the euro strengthens against the dollar.
EURINR currency futures trade on the NSE alongside USDINR, GBPINR and JPYINR, letting Indian businesses hedge euro exposure in rupee terms. ECB policy and eurozone growth drive the euro leg.
Related terms
- USDINRUSDINR is the exchange rate of the US dollar against the Indian rupee, the most-watched currency pair in India and a key barometer of capital flows and import costs.
- Cross RateA cross rate is the exchange rate between two currencies derived through a common third currency (usually the US dollar) rather than quoted directly.
- Currency Futures on NSECurrency futures on the NSE are standardised, exchange-traded contracts to buy or sell a fixed amount of foreign currency against the rupee on a future date.
- European Central Bank (ECB)The ECB is the central bank for the eurozone, setting interest rates and monetary policy for the countries that share the euro.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.