With both India and the UK enjoying better-than-expected domestic data on Tuesday, the Pound to Indian Rupee exchange rate is fluctuating within a narrow range. As traders await the key British Gross Domestic Product estimate the gains made from improved manufacturing and industrial production have been minimal.
The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 98.6310.
Sterling tumbled against the majority of its most traded currency competitors on Monday after Business Secretary Vince Cable suggested that Sterling overvaluation was hampering economic growth and causing inflationary pressure.
This emulated comments made previously by Bank of England officials Ben Broadbent and Kristin Forbes and traders took note; allowing the Pound to decline against higher-yielding currencies.
With a four-day market hiatus due to an Indian holiday, Rupee movement was subject to foreign currency changes on Monday.
The Pound Sterling to Indian Rupee exchange rate has hit a low today of 98.4170.
Tuesday’s British data has printed positively thus far, although the gains have been minimal as investors await the GDP estimate due later in the day.
Yearly Industrial Production was forecast to drop from the revised figure of 2.2% to 1.8%, but the actual result indicated a surge to 2.5%.
Year-on-year Manufacturing Production was expected to decline from the revised figure of 3.5% to 2.8%, but the actual data revealed a jump to 3.9%.
Indian data on Tuesday also printed impressively. The HSBC India Services PMI was forecast to increase from 50.6 to 50.8, but the actual result showed an uptick to 51.6.
Frederic Neumann, Co-Head of Asian Economic Research at HSBC said; ‘Services sector activity bottomed out in September thanks to stronger new business flows. However, business sentiment continues to deteriorate after a strong post-election uptick. On the positive side, employment rose and inflation fell significantly. A pick up in reform effort is sorely needed to put growth on a firmer footing and address supply side risks to inflation’.
Forecast for the Pound Sterling to Indian Rupee Exchange Rate
With an absence of Indian economic data until Friday, the Rupee is likely to decline against the Pound. Rupee declination against the majority of its most traded currency rivals is a high likelihood unless there is a significant alteration to the US Dollar.
Sterling’s standing on Tuesday is yet to be decided as traders await the GDP estimate. A positive result should see Sterling claw back some of the losses from Cable’s comments, much to the disappointment of those fearing Sterling overvaluation.
The Pound Sterling to Indian Rupee exchange rate has reached a high today of 98.8990.
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,0.0129,
Indian Rupee,,Pound,0.0101,
Indian Rupee,,New Zealand Dollar,0.0208,
US Dollar,,Indian Rupee,61.4062,
Euro,,Indian Rupee,77.3800,
Pound Sterling,,Indian Rupee,98.6144,
New Zealand Dollar,,Indian Rupee,48.0245,
[/table]
