Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate eases on PMI data

The Pound softened against the Indian Rupee on Monday after the Asian currency received support from a better than expected manufacturing PMI report.

According to the HSBC Manufacturing Purchasing Managers Index (PMI) compiled by Markit, factory activity in India expanded to 51.4 in May from the 51.3 level recorded in April.

The report also showed that The new orders sub-index, which includes domestic demand as well as orders from abroad, rose to 53.2 in May, a three-month high, from 52.5. A rise in the new orders index often is followed by better output in following months.

“The momentum in the manufacturing sector improved at the margin, thanks to higher domestic and export order flows. Output growth held steady as frequent power cuts forced firms to accumulate backlogs at a faster pace,” said Frederic Neumann, Co-head of Asian Economic Research at HSBC.

The report also showed that the number of new orders and new export business increased last month leading to more job creation across the manufacturing sector.

The Pound to Rupee exchange rate is currently trading around 99.0373.

The Pound meanwhile came under pressure after data showed that the number of new mortgages being approved in the UK fell to a nine-month low as stricter rules came into force.

The number of new approvals fell from 66,563 in March to 62,918 in April. The data also showed that there is continued weakness in business lending which fell £2.4 billion in April.

A separate manufacturing PMI for the UK also showed that activity eased slightly last month.

Indian Rupee Exchange Rate