The Pound Sterling to Indian Rupee (GBP/INR) exchange rate pared Wednesday’s gains early into local trading and the US Dollar to Indian Rupee (USD/INR) exchange rate moved away from a four-month high as the emerging-market currency broadly strengthened.
Although economic reports for India were lacking, the Rupee was able to advance on several of its most traded currency counterparts in response to the news that the Indian government has agreed to increase the cap on foreign direct investment in the defence sector.
The cap has been increased to 49% and will benefit India’s infrastructure.
The Rupee accordingly climbed by 0.3% against the US Dollar and advanced on the Pound, prompting this response from Gaurav Sharma; ‘The cabinet decisions on allowing higher FDI are positive for the Rupee. The Dollar’s weakness also contributed to the Rupee’s strength.’
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate hit a low of 103.0900.
There was little movement in the GBP/INR pairing in response to comments issued by Raghuram Rajan, the Reserve Bank of India’s Governor.
Rajan asserted that if the fiscal policy being adopted by developed nations inspires a bout of risk appetite among investors, the global economy could be pushed back into crisis territory.
While speaking to the Central Banking Journal Rajan stated; ‘We are taking a greater chance of having another crash at a time when the world is less capable of bearing the cost. [Investors] put the trades on even though they know what will happen as everyone attempts to exit positions at the same time. There will be major market volatility if that occurs.’
As Thursday continues the Bank of England (BoE) will be delivering its interest rate decision.
Given that the central bank is broadly expected to leave fiscal policy unaltered, the announcement probably won’t have much of an impact on the Pound to Rupee exchange rate.
The US Dollar to Indian Rupee exchange rate, on the other hand, could experience volatility following the publication of the US Initial Jobless and Continuing Claims figures.
Pound Sterling to Indian Rupee Exchange Rate Forecast
Next week there are several potentially influential Indian economic reports to be aware of.
The nation’s Balance of Trade figures are scheduled for publication on Monday, with Industrial Production, Manufacturing Production and Inflation Rate figures following on Tuesday.
Thursday will see the publication of India’s Wholesale Price inflation and Foreign Reserves figures close out the week on Friday.
Of course, UK news (in particular the nation’s employment figures and second quarter GDP) is likely to have an influence on the Pound Sterling to Indian Rupee exchange rate.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trading in the region of 103.2600.
Indian Rupee (INR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,Indian Rupee,103.2830,
US Dollar,,Indian Rupee,61.3400,
Euro,,Indian Rupee,82.0640,
Australian Dollar,,Indian Rupee,56.8560,
New Zealand Dollar,,Indian Rupee,51.8820,
[/table]
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