GBP/INR Exchange Rate Predicted to Rally despite Poor UK Data
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate advanced by around 0.5% on Tuesday afternoon.
In general, the Pound was trending statically versus its major peers on Tuesday as investors showed reluctance to trade amid so much uncertainty regarding central bank policy outlook. With some economists now forecasting that the Bank of England (BoE) will hold off from raising rates until 2017, when more will be known regarding the European Union referendum, Sterling movement has been quiet. Unknowns regarding China’s economic standing and the full extent of the Volkswagen scandal are also weighing on trader sentiment.
Tuesday’s British economic data produced disappointing results. September’s New Car Registrations came in at 8.6% growth on the year, a drop from the previous figure of 9.6%. Halifax House Prices declined by -0.9% on the month in September; well below the median market projection of 0.1% growth. However, the Pound avoided a large depreciation in response to the data after Halifax analysts stated that underlying house price growth remained robust.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 99.1770.
INR/GBP Conversion Rate Forecast to Dive despite Delayed Federal Reserve Rate Hike Bets
With futures traders forced to delay Federal Reserve rate hike bets following a plethora of disappointing domestic ecostats, the Indian Rupee appreciated significantly. Aiding the uptrend was stability in India’s stock markets at a time when markets around the world struggled in response to irregularities in the Shanghai Composite Index. Crude oil prices have remained weak for a sustained period which has fuelled India’s economic growth.
After recent gains, the Rupee softened on Tuesday as traders looked to capitalise on attractive selling positions. Also helping the downtrend is rising crude oil prices and a slight drop in Indian Services growth. The Nikkei India Services PMI dropped from 51.8 to 51.3 in September. Pollyanna De Lima, economist at Markit, stated ‘Looking ahead, service providers expect further setbacks, as highlighted by the Future Output Index sliding to its lowest mark in the history of the series. That said, the RBI continued its attempt to shift India’s growth momentum into a higher gear. The repo rate was cut for the fourth time in 2015 so far and now stands at a four-and-a-half year low of 6.75%.’
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate has fallen to a low of 98.6190 during Tuesday’s European session.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Hold Steady ahead of US Trade Balance
Given the absence of further domestic data publications pertaining to both the UK and India, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is likely to hold steady for the remainder of Tuesday’s European session. With that being said, US Trade Balance data may have an impact given that Dollar hawks will be looking for any excuse to push the ‘Greenback’ (USD) higher. That could cause the Indian Rupee to decline. Crude oil price fluctuations may also impact on the currency pairing.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate advanced to a high of 99.2230 during Tuesday’s London session.
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