Positive Indian economic data has seen the Pound to Indian Rupee (GBP/INR) exchange rate decline by around -0.10%. Although British data has printed negatively on Friday, the Pound is generally trending higher versus the majority of its most traded currency competitors.
The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 98.1620.
Over the past few days the Pound has firmed up against many of its currency rivals after a sustained bearish run. After the Bank of England policymakers made it clear that the benchmark interest rate will remain on hold for the foreseeable future, negative sentiment towards the institute compounded. However, with other major banks emulating the BoE in holding their rates without giving a clear indication as to the timing of a revision, the Pound rebounded.
A complete absence of Indian economic data has seen the Rupee fluctuate against its major peers over the past week. However, a steady appreciation can be attributed to a softening US Dollar as futures traders pared bets as to the timing of monetary policy normalisation.
The Pound Sterling to Indian Rupee exchange rate has fallen to a low today of 97.9660.
Friday’s British data has printed relatively poorly, although it has had little effect on the Pound. The Consumer Confidence Survey was forecast to meet with the previous figure of -1, but the actual result declined to -2.
Indian economic data has produced mixed results on Friday, although erring towards positivity. Foreign Reserves increased from $313.68 billion to $314.18 billion. Bank Loan Growth ticked higher from 11.0% to 11.1%. Deposit Growth, however, declined from 13.1% to 12.6%.
The Indian Rupee has also enjoyed its biggest monthly advance since May amid speculation that low oil prices will ease inflation and create room for the central bank to cut interest rates. ‘The drop in oil prices will help reduce inflation and give elbow room to the central bank to ease rates,’ said Ankur Jhaveri, co-head of currency and rates in Mumbai at Edelweiss Financial Services Ltd. ‘The bullish sentiment also reflects investors’ expectations that India will continue to be a very attractive destination.’
Kartik Goyal, writing for Bloomberg, stated; ‘Brent crude has dropped 24 percent since June 30, reducing costs for the South Asian nation that imports almost 80 percent of its oil needs. Consumer prices rose 6.46 percent last month from a year earlier, the slowest pace since the index was created in January 2012, the government reported Oct. 13.’
Pound to Indian Rupee Exchange Rate Forecast to Decline
With lower oil prices bolstering Rupee gains, it is unlikely that the GBP/INR exchange rate will advance over the weekend. Saturday’s Chinese Manufacturing PMI could potentially provoke volatility for the GBP/INR exchange rate however. Should Chinese manufacturing decline it may set off a spate of trader risk-aversion strategies, and the emerging-market Rupee will depreciate as a result.
The Pound Sterling to Indian Rupee exchange rate has advanced to a high today of 98.3050.
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,0.0162,
Indian Rupee,,Euro,0.0130,
Indian Rupee,,Pound,0.0101,
Indian Rupee,,Australian Dollar,0.0185,
US Dollar,,Indian Rupee,61.4452,
Euro,,Indian Rupee,76.9493,
Pound Sterling,,Indian Rupee,98.1853,
Australian Dollar,,Indian Rupee,53.9623,
[/table]
