After Chinese data erred towards the positive on Tuesday, trader risk aversion strategies have taken a back seat. The Indian Rupee has benefitted from this improved trader risk-sentiment and has strengthened against many of its peers. The Pound, meanwhile, has declined against the majority of its most traded currency competitors after public finances data printed disappointingly.
The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 98.6132.
Sterling managed to make some healthy gains on Monday after monthly housing prices improved in October. Rightmove House Prices strengthened from 0.9% to 2.6% on a month-on-month basis.
Additionally, the Pound improved after traders digested the fact that none of the major central banks are likely to hike rates until global economic growth has recovered.
Meanwhile, the Indian Rupee struggled a little on Monday from Prime Minister Modi’s economic reform. Modi plans to pass a goods and services tax, open up to foreign investment and make subsidies for fertiliser, cooking gas and food more accessible to the poor. This is a positive for the Indian economy, but in the short-term any economic reform usually means trouble for the exchange rate.
The Pound Sterling to Indian Rupee exchange rate has fallen to a low today of 97.3227.
On Tuesday the Pound has fallen against the majority of its peers after public finances data printed disappointingly. Public Finances rose exponentially from 1.9 billion to 17.7 billion, and Public Sector Net Borrowing increased from 10.7 billion to 11.1 billion.
A complete absence of Indian economic data has actually been reasonably beneficial for the Rupee. As trader risk-sentiment improved there is increased investment into high-yielding currencies.
Pound to Indian Rupee Exchange Rate Forecast to Strengthen
With a distinct lack of Indian domestic data over the next few days it is likely that the Rupee will soften against the Pound. In fact, given that there isn’t any more Indian data for the remainder of the week the Rupee movement will be dictated by changes in commodities, geopolitical developments and the movements of foreign currencies.
Wednesday’s British economic data is likely to spark volatility. The Bank of England publishes the minutes from the most recent monetary policy meeting. It will be of interest to those invested in the Pound to see whether the pair of hawkish policymakers continue to dissent from Governor Mark Carney’s policy outlook, especially under the umbrella of global economic stagnation.
The pound Sterling to Indian Rupee exchange rate has reached a high today of 99.5786.
