The Pound Sterling to Indian Rupee (GBP/INR) exchange rate has strengthened by over 0.40% on Monday. This can be attributed to the positive results from the recent European Central Bank stress test, which indicated that the majority of Eurozone banks are outperforming expectations. Meanwhile, a complete absence of Indian economic data has seen the Rupee fall against the majority of its most traded currency competitors.
The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 98.7580.
Over the past few months, a stagnating Eurozone economy has anchored the Pound due to the close trading relationship between Britain and the Eurozone. The flagging 18-nation currency bloc has aided Sterling declination and weighed heavily on any advance from the British asset.
Compounding the Pound’s depreciation has been increasingly negative sentiment towards the Bank of England. As one of the front runners to initiate a rise in interest rates, the BoE’s continued dovish outlook has dramatically pared bets as to the timing of monetary policy normalisation.
Those invested in the Indian Rupee have endured volatile fluctuations on the ebb and flow of geopolitical pressures. Friday’s positive Foreign Reserves data, however, allowed the Rupee to cut back some of the losses from anxieties regarding the Ebola epidemic.
The Pound Sterling to Indian Rupee exchange rate has fallen to a low today of 98.2320.
On Monday, the Pound advanced against the Yen after the European Central Bank published the report from the European bank stress tests. In the hope of quelling fears regarding Europe’s financial stability, regulators announced that all but 13 of the continent’s leading institutions have the capital to survive another economic crash.
‘This unprecedented in-depth review of the largest banks’ positions will boost public confidence in the banking sector,’ said ECB Vice President Vítor Constâncio. ‘This should facilitate more lending in Europe, which will help economic growth.’
A complete absence of Indian economic data on Monday has seen the Rupee fade against many of its major rivals. This is in spite of easing geopolitical concerns regarding Ukraine, who have elected a pro-western government.
Pound to Indian Rupee Exchange Rate Forecast to Strengthen
With nothing in terms of domestic data until Friday, the Indian Rupee is likely to soften against the Pound.
Those invested in Sterling will be hoping that the various speeches from BoE officials over the coming days will contain hawkish overtones. Any mention of the progression towards rate hikes will repair some of the damage inflicted by the most recent BoE minutes.
The Pound Sterling to Indian Rupee exchange rate has reached a high today of 98.7950.
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,0.0163,
Indian Rupee,,Euro,0.0128,
Indian Rupee,,Pound,0.0101,
Indian Rupee,,Australian Dollar,0.0185,
US Dollar,,Indian Rupee,61.2892,
Euro,,Indian Rupee,77.6834,
Pound Sterling,,Indian Rupee,98.6704,
Australian Dollar,,Indian Rupee,53.9435,
[/table]
