What will be the exchange gain/loss on USD Forward Sale contract booked at 85.12, and cancelled on maturity at 84.30 INR/USD?
A currency forward is a binding contract in the foreign exchange market that locks in the exchange rate for the purchase or sale of a currency on a future date. Book rate = 85.12/USD on maturity got 84.30/USD Loss = 85.12-84.3 = 0.82 INR/USD.
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