Having posted a set of much better-than-expected British labour market figures on Wednesday, the Pound has firmed up against the Indian Rupee. However, global price cuts to crude oil have helped keep the Indian Rupee in a position of strength.
The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 97.7009.
On Tuesday the Pound took a significant hit from UK inflation data, causing it to dive against nearly all of its major peers. The Consumer Price Index declined from 1.5% to 1.2% despite the market consensus of only a small dip to 1.4%.
Tuesday’s Indian data was also a little negative. The Wholesale Price Index cooled from 3.74% to 2.38%. Given that the Bank of India has set an inflationary target of 3% the WPI moved in the correct direction, but overshot the mark.
The Pound Sterling to Indian Rupee exchange rate has fallen to a low of 97.3227.
On Wednesday the Pound has managed to rebound from its bearish trend after labour market data impressed.
Perhaps most significantly, Average Weekly Earnings improved upon the previous figure of 0.6%, rising to 0.7%. As addressing wage growth has been targeted by the Bank of England as one of the conditions to be met before the normalisation of monetary policy, an uptick bodes well for rate hawks.
Further Sterling appreciation can be attributed to positive results from Claimant Count Rate, Employment Change, Unemployment Rate, Jobless Claims Change and Weekly Earnings ex Bonus.
A lack of Indian data on Wednesday has seen the Rupee become somewhat static, although still holding a high exchange rate from oil price cuts.
‘The market is currently in a state of panic as no one is prepared to put a hand under it,’ Ole Sloth Hansen, an analyst at Saxo Bank A/S in Copenhagen, said by e-mail. ‘OPEC’s lack of reaction to the latest sell-off could indicate they want to share the production cuts with the US.’
Forecast for the Pound to Indian Rupee Exchange Rate
Martin Weale, a policymaker at the Bank of England, is due to make a speech later on Wednesday regarding the benchmark interest rate. With all indicators pointing towards a global economic slowdown it is unlikely Weale’s comments will be hawkish. That being said, he is one of the two MPC members who voted in favour of a rate hike on two previous occasions.
A lack of Indian data until Friday may cause the Rupee to slide a little versus its most traded currency rivals. However, should the oil market continue on its bearish course Rupee depreciation will be minimal.
The Pound Sterling to Indian Rupee exchange rate has risen to a high today of 97.8892.
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,0.0163,
Indian Rupee,,Euro,0.0127,
Indian Rupee,,Pound,0.0102,
Indian Rupee,,Australian Dollar,0.0185,
US Dollar,,Indian Rupee,61.2640,
Euro,,Indian Rupee,78.3275,
Pound Sterling,,Indian Rupee,97.9584,
Australian Dollar,,Indian Rupee,53.9426,
[/table]
