The Pound Sterling to Indian Rupee (GBP/INR) exchange rate ticked lower by around -0.29% on Tuesday afternoon.
After British economic data produced positive results on Tuesday, the Pound strengthened versus many of its most traded currency competitors. The appreciation has been slowed a little, however, with the forthcoming general election weighing on investor confidence amid political uncertainties.
The Indian Rupee, meanwhile, strengthened versus many of its major peers as a result of speculation that the Rupee’s first quarterly gain in a year is an indication of an improving domestic economic outlook. Low oil prices also bolstered demand for the emerging-market asset.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 92.3810.
Pound Sterling (GBP) Exchange Rate Advances on Fourth-Quarter Growth
With opinion polls giving no clear indication as to which party might secure a majority vote in the forthcoming general election, investor confidence has dampened sharply over the past few months. Should the election result in a hung parliament, as most predict, the chances of a significant policy change is amplified.
Although political uncertainties are weighing on demand for the British asset, the Pound strengthened on Tuesday as a result of particularly positive domestic data. This could also give a boost to the conservative party who have used the economic recovery as the back-bone to their campaign.
One such positive data result was final fourth-quarter Gross Domestic Product, which came in at 3.0% on the year; eclipsing the market forecast of 2.7% growth. This upward revision saw a spike in demand for the Pound. Consumer confidence also bettered estimates which aided the Sterling appreciation.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate has fallen to a low of 92.2890 today.
Indian Rupee (INR) Exchange Rate Rallies on Low Crude Prices
As one of the foremost crude importers, low oil prices are very beneficial for the Indian economy. This has seen far greater demand for the Rupee, and subsequently attracted more inflows. Those inflows caused the Rupee to register its first quarterly gain in over a year which is a good indication that the emerging-market economy is on track for healthy economic improvement.
‘In the emerging-market space, India is one of the best shining stars and that’s attracting a lot of capital inflows,’ said N.S. Venkatesh, the Mumbai-based head of treasury at IDBI Bank Ltd. ‘The currency has been stable with the current-account and fiscal deficits being managed well and that has put India into a big sweet spot.’
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Trend within Limited Range
With the Pound unlikely to make any significant gains ahead of the general election, and with a lack of domestic data to curb the trend, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is likely to trend within a narrow range over the remainder of the European session.
There is the potential for GBP/INR volatility on Wednesday, however, with UK manufacturing data due for publication. However, this is unlikely to have a massive impact with investor confidence still relatively dampened.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate reached a high today of 92.6560.
