45.6850

45.7400

45.7500

45.8450

45.5150

45.4600

45.4500

45.3550

45.8650

46.0800

46.1800

46.4450

45.3350

45.1200

45.0200

44.7550

45.9450

46.1850

46.2950

46.6400

45.2550

45.0150

44.9050

44.5600

Value at Risk (VaR) is a Risk Management and a Management Concept and is defined as an estimate of potential loss in a position or asset or portfolio of assets over a given holding period at a given level of certainty.  Thus VaR measures the probability of loss for a given period of time over which the position is held while the given time period could vary from one day to a week to a month or a year. This VaR will change if the holding period of an instrument/position is changed which of course depends on the liquidity of the instrument/market.

Thus, VaR measures potential loss and not potential gain. This Loss might arise out of an unexpected happening but the maximum amount of loss that might be sustained can be determined mathematically at varying degrees of certainty for a given range of volatility per annum. These varying levels of confidence use different Standard Deviations and are depicted in the chart below :

A Table is compiled below showing the Risk of a Loss in U.S.Dollar Vs. Indian Rupee if it held on for a period of One Day, 10 Days and 15 Days at all the aforementioned levels of confidence. This Table is dynamic and continually calculates both the upside and downside rates that the USD/INR might attain at the specified probability and at the present volatility of the currency. The Base Rate on which it is calculated is mentioned on top of the Table and the Volatility is automatically generated from our Real-Time Prices.