In spite of Wednesday’s reasonably positive British data and a bout of risk aversion, Sterling is holding in a narrow range against the Indian Rupee. The reason for this is tricky to pinpoint but could be attributed to investors holding off ahead of Thursday’s Bank of England rate decision.
The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 98.6410.
Although Tuesday’s British data was mixed, possibly erring more on the positive side, Sterling generally declined against high-yielding currencies. This is perhaps in response to several comments regarding Sterling overvaluation and the strength of the local currency being one of the main causes of inflationary pressure.
Both British industrial and manufacturing production were seen to have increased on a yearly basis, but both were also shown to have cooled in August month-on-month. Also the NIESR Gross Domestic Product estimate was forecast to decline from 0.8% to 0.7%, although the previous figure was positively revised.
Indian data printed relatively impressively on Tuesday, which aided a Rupee uptrend. The HSBC India Services PMI was forecast to increase from 50.6 to 50.8, but the actual result showed an advance to 51.6.
The Pound Sterling to Indian Rupee exchange rate has hit a low today of 98.4580.
British economic data has been reasonably positive on Wednesday, although Sterling has generally struggled to make any noticeable gains against the majority of its most traded peers.
The three-monthly Halifax House Price figure declined in line with the market consensus of a drop from 9.7% to 9.6%. House Prices in September, however, eclipsed the median market forecast of a rise of 0.2% following stagnation in August, with the actual result advancing by 0.6%.
However, the BRC Shop Price Index saw a decline from -1.6% to -1.8%.
A complete absence of Indian data has seen the Rupee generally decline against the majority of its most traded currency competitors today.
A significant dampening of trader risk sentiment has had a negative effect on emerging-market currencies such as the Indian Rupee.
In the aftermath of the publication of the International Monetary Fund’s report, which indicated that the pace of the global recovery was uneven and country-specific, trader risk aversion strategies have taken precedence.
Forecast for the Pound to Indian Rupee Exchange Rate
Thursday’s British data will be key in determining Sterling movement. The Bank of England Rate Decision could provoke volatility.
Friday’s Indian data will be of importance to those invested in the Indian Rupee. Industrial and Manufacturing Production will be of interest and have the potential to spark Rupee movement.
The Pound Sterling to Indian Rupee exchange rate has reached a high today of 98.7830.
Indian Rupee (INR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Indian Rupee,
,US Dollar,0.0162,
Indian Rupee,,Euro,0.0128,
Indian Rupee,,Pound,0.0101,
Indian Rupee,,New Zealand Dollar,0.0208,
US Dollar,,Indian Rupee,61.3978,
Euro,,Indian Rupee,77.7283,
Pound Sterling,,Indian Rupee,98.7001,
[/table]
