As the US Dollar continues to speed ahead, emerging market currencies like the Indian Rupee are getting left in the dust. Sterling, meanwhile, is holding ground ahead of Bank of England Governor Mark Carney’s speech in Wales.
The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 99.5640.
With an absence of British data on Wednesday the Pound struggled to battle against the spate of trader profit-locking following the Unionist victory in the Scottish independence referendum. Further losses came after Prime Minister David Cameron said that Britain had no choice but to take military action against Islamic State militants in Iraq and Syria.
The Indian Rupee has generally been performing strongly as one of the few currencies able to avoid falling as a result of a bullish US Dollar. ‘While the Dollar is gaining globally, the impact on the Rupee hasn’t been too severe and we don’t see much depreciation going forward,’ said Naveen Raghuvanshi, Mumbai-based currency trader at DCB Bank. ‘India remains one of the preferred destinations for global investors because of attractive carry’.
The Pound Sterling to Indian Rupee exchange rate has hit a low today of 99.2300.
Sterling has remained fairly static against the majority of its most traded currency peers on Thursday as traders await BoE Governor Mark Carney’s speech in Wales later in the day. Should the speech contain any hawkish references to tightening monetary policy the Pound should gain a healthy boost. However, the opposite could be said if the outlook on monetary policy remains dovish.
Despite having avoided the brunt of the US Dollar’s forceful run the Indian Rupee has lost a lot of ground after traders digested Wednesday’s US housing market data. US New Home Sales were forecast to rise a little from 427,000 to 430,000, but the actual data revealed a huge leap to 504,000. The positive result sent US bulls charging to chart-topping status, and the Indian Rupee lost grip on its tailcoat, falling to a weekly low against the ‘Buck’ (USD).
Forecast for the Pound to Indian Rupee Exchange Rate
The direction taken by Sterling on Friday is completely reliant on Mark Carney’s speech later on Thursday. Should the speech prove to be positive the Pound is likely to sustain high gains into the weekend. Conversely, the opposite could be said if Carney tries to talk down Sterling.
Friday’s Indian data has the potential to provoke Rupee movement. Foreign Reserves hit 315.7 billion previously. Should Thursday afternoon’s US data print negatively the Indian Rupee is likely to sustain gains throughout Friday.
The Pound Sterling to Indian Rupee exchange rate has reached a high today of 99.6500.
UPDATE
The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 100.1300.
On Thursday Bank of England Governor Mark Carney gave a speech in Wales. In the speech he said that nearly all the prerequisites for normalising monetary policy have been met, and the timing for a rate hike is fast approaching. Sterling rocketed up the chart as a result; strengthening against all of its sixteen major currency peers.
India’s Foreign Reserves data due later on Friday is unlikely to provoke any change in the Pound to Indian Rupee exchange rate.
