On Friday the Pound shed recent gains as investors took advantage of Sterling’s surge and engaged in a bit of profit taking.
Tuesday’s impressive UK service sector report buoyed the Pound against its peers and kept the currency trading higher for much of the week.
However, the Pound was little-changed following the Bank of England’s rate decision on Thursday and put in a patchy performance on Friday after the release of a mixed bag of manufacturing production and construction output figures for the UK.
Meanwhile, the Rupee was supported by domestic developments and closed the local session on Friday in a stronger position against peers like the Pound, US Dollar and Euro.
The Rupee was trading higher as opinion polls revealed that the main opposition Bharatiya Janata Party is heading for victory in the general election.
The Pound to Indian Rupee exchange rate is in the region of 101.0610. USD to INR is trading around 59.8900.
The prospect of India’s ruling governing body finally being one committed to promoting the nation’s economic growth helped the Rupee climb.
As stated by forex trader Amogh Moghe; ‘The market is gearing up for the election outcome and is looking forward to next week’s exit polls, which will give an indication of final results. If the results are as per the opinion polls, then the Rupee could appreciate to 59.25’.
Earlier this week the Rupee rallied as Federal Reserve Chairwoman Janet Yellen delivered a dovish policy statement.
The central bank chief stated that interest rates are likely to remain at record lows for the foreseeable future as a result of ongoing economic headwinds and emerging-market currencies like the Rupee strengthened.
Next week there are several influential economic reports for India to be aware of.
Monday sees the release of Indian trade balance, manufacturing/industrial production and inflation rate figures, and on Friday investors will be focusing on foreign reserves, deposit growth and bank loan growth data.
Of course the UK’s employment report is also likely to trigger GBP to INR movement.
Indian Rupee (INR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,Indian Rupee,101.0610,
US Dollar,,Indian Rupee,59.8900,
Euro,,Indian Rupee,82.4027,
Australian Dollar,,Indian Rupee,56.0031,
New Zealand Dollar,,Indian Rupee,51.5533,
[/table]
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