The Pound Sterling to Indian Rupee (GBP/INR) exchange rate dived by around -0.68% on Wednesday afternoon.
After British economic data produced a mixed-bag of results on Wednesday, the Pound fluctuated versus its major peers. Sterling is holding a position of strength, however, thanks to speculation that the Bank of England (BoE) will be one of the first major central banks to hike the benchmark interest rate.
The Indian Rupee, meanwhile, strengthened versus the majority of its most traded currency competitors. This is as a result of crude prices falling amid oversupply. As one of the foremost importers of oil, the Indian economy benefits significantly from cheaper imports.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 93.9360.
Pound Sterling (GBP) Exchange Rate Fluctuates on Mixed Data
Mixed domestic data, which errs towards the negative, caused the Pound to fluctuate versus its most traded currency rivals on Wednesday. January’s Industrial Production came in at 1.3% on the year, meeting with the median market forecast and bettering the previous figure. However, annual Manufacturing Production only grew by 1.9% in January, down from the previous figure and the market consensus of 2.6%. The Gross Domestic Product Estimate equalled the previous estimate of 0.6% growth.
Howard Archer, chief UK and European economist at IHS Global, said while the fall in monthly manufacturing output was disappointing ‘elevated consumer confidence, markedly improving consumer purchasing power and rising employment should underpin demand for consumer durable goods.’
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate dropped to a low of 93.7110.
Indian Rupee (INR) Exchange Rate Strengthens on Oil Prices
Oil prices dropped below $50 a barrel on Wednesday, causing the Indian Rupee to strengthen versus many of its major peers. The decline has been linked to oversupply in the US with crude s stocks at the storage hub of Cushing, Okla., climbing by 2.3 million barrels.
‘We are almost still at the same point as last week’s EIA report as Cushing continues to see build after build increasing its record highs from last week,’ said John Macaluso, research analyst at Tyche Capital Advisors. ‘Headlines out of Cushing will still be about when operational capacity could possibly be reached at this rate of builds in crude storage.’
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Hold Losses
Given the lack of data to curb the trend, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is likely to hold losses for the remainder of Wednesday’s trade. Thursday ought to see heightened GBP/INR volatility with several Indian data publications due.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate climbed to a high of 95.2750 today.
