Can I take a forex cover for INR and EURO directly without being affected by USD ? -

The intention is to avoid the volatility of the relationship between USD and Euro amp; USD-INR Why not ? But you cannot speculate or trade in Forex. If you are in import amp;/or export business, and bills are drawn on you in Euro, or you draw bills on your buyers in Euro , with payment facilities such as 60/90 days D/A etc., you can cover the amount in INR irrespective of fluctuations in foreign exchange. Your bankers can either take fluctuation risk on themselves or pass it on to the RBI. Can you expound your circumstances in more detail, to enable a possible solution to hedge FOREX exposure; the Currency cross markets between some currencies are deep amp; operate on a complex model with cross currency dependencies.IN the absence of a Cross-currency market (between Euro/INR) the USD serves as a vehicle currency,hence requires two trades. lt;IAAI(dot)Kaptal@gmail(dot)comgt;. Of course, they are all different in their own factors but largely each affect each other :) but if your fast it will be easy to guess.