After traders have had time to digest the rise in inflation, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate has extended losses. With a distinct lack of data to curb the trend, the GBP/INR exchange rate is likely to continue trending lower as traders await the Bank of England minutes, due for publication on Wednesday.
Earlier…
After Tuesday’s UK data highlighted a lack of correlation between wages and inflation, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate was trending in a narrow range. A complete absence of Indian data has seen the Rupee subject to forex fluctuations, although continued issues with cut-price crude has boosted the Rupee thanks to cheap imports.
The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 96.6110.
Inflation Rises, Sterling (GBP) Falls
Although Bank of England policymakers have targeted rising inflation as a prerequisite for monetary policy normalisation, Tuesday’s uptick in inflation has only highlighted continued issues regarding the lack of correlation between inflation and wage growth. The Consumer Price Index eclipsed the median market forecast of 1.2%, with the actual result reaching 1.3%.
Howard Archer, of IHS Global Insight, said; ‘The slight rise in consumer price inflation to 1.3% in October will do little to dilute recently markedly increased belief that the Bank of England will not be raising interest rates before the final months of 2015.’
The Pound Sterling to Indian Rupee exchange rate has fallen to a low today of 96.4520.
Rupee (INR) Fluctuates on Oil Prices
For the second time in three days Brent crude rose amid speculation that OPEC will reduce output amid weaker demand. Futures gained as much as 0.8% in London on Tuesday. However, the sudden changes in global oil prices of late has seen traders unsure how to approach the Rupee. A steady rise from cheap imports seems to have reached a plateau, but the potential for a significant declination is possible if oil prices continue to increase.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Strengthen
With the possibility that the rise in inflation is short-lived, the Pound has the potential to benefit from those uncertainties and strengthen against the Rupee. However, much relies on the price of crude, and the Rupee is likely to soften as oil prices rise.
The Pound Sterling to Indian Rupee exchange rate has advanced to a high today of 96.8510.
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,0.0161,
Indian Rupee,,Euro,0.0129,
Indian Rupee,,Pound,0.0103,
Indian Rupee,,Australian Dollar,0.0185,
US Dollar,,Indian Rupee,61.7710,
Euro,,Indian Rupee,77.2939,
Pound Sterling,,Indian Rupee,96.7185,
Australian Dollar,,Indian Rupee,53.8238,
[/table]
