The Pound may have been supported in recent weeks by a series of pieces of surprisingly strong economic data for the UK, but the Rupee still enjoyed a notable rally against its British rival during local trading.
The Pound Sterling to Indian Rupee Exchange Rate was in the region of 100.5780 as of 11:40 GMT
Although Sterling experienced little movement after a measure of UK home values showed a decline in prices in November, the Pound slipped against the Rupee as Federal Reserve tapering speculation boosted the Indian currency.
Last week Janet Yellen, candidate for the position of Chairman of the Federal Reserve, asserted that bond purchases and accommodative fiscal policy need to be maintained until the US economic recovery is broader based and stable.
As some industry experts had been expecting the Fed to begin tapering in December, the prospect of local stock purchases being bolstered by continuing global inflows pushed the Rupee 1.1 per cent higher against the US Dollar since last Thursday and helped the currency advance on the Pound.
On Friday Reserve Bank of India Governor Raghuram Rajan also stressed the importance of reviving growth whilst restraining inflation. During a speech Rajan stated; ‘We need to reduce demand somewhat without having serious adverse effects on investment and supply. This is a balancing act, which requires the Reserve Bank to act firmly so that the economy is disinflating, even while allowing the weak economy more time than one would normally allow for it to reach a comfortable level of inflation.
The Pound Sterling to Rupee (USD/INR) exchange rate hit a low of 100.4280
Rajan’s words, coupled with the fact that the RBI chief has already proven himself to be a man of action, helped the Rupee climb against its peers.
With economic data for India thin on the ground this week, fluctuations in the GBP/INR pairing are most likely to occur in response to UK news, like this week’s publication of minutes from the latest Bank of England policy meeting and UK public finance figures.
Current Rupee (INR) Exchange Rates:
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 100.5780 <
The Euro/Indian Rupee Exchange Rate is currently in the region of: 84.2889 <
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 62.3800 <
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.6921 <
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 52.3437 >
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.8676 <
(Correct as of 11:40 GMT)
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