The Pound Sterling to Indian Rupee (GBP/INR) exchange rate rallied by almost 0.4% on Wednesday even as the Pound softened against several of its other most traded currency counterparts.
Meanwhile, the US Dollar to Indian Rupee (USD/INR) exchange rate pushed its way to a four-month high as US data continued to impress – bolstering the case for a sooner-rather-than-later rate hike from the Federal Reserve and undermining demand for higher-risk assets.
The Rupee shed 0.7% against the US Dollar in the wake of yesterday’s impressive US ISM Non-Manufacturing and Markit Services PMI’s.
US Factory Orders figures also surpassed expectations, showing a monthly gain of 1.1% in June.
These upbeat reports followed last week’s impressive US second quarter growth data and robust employment figures.
Currency analyst Anindya Banerjee said this of the Rupee’s movement; ‘The Rupee weakness is largely driven by the Dollar’s strength. The concern worrying investors is that the Dollar supply may dry up when quantitative easing finally ends this year.’
The US has been steadily tapering its bond-buying scheme in recent months, and the programme is due to end in October.
The US Dollar to Indian Rupee (USD/INR) exchange rate hit a high of 61.4100.
Although the Pound Sterling to Indian Rupee (GBP/INR) exchange rate remained buoyant, the Pound eased lower against the majority of its other most traded currency counterparts on Wednesday.
Sterling weakness was sustained in response to below forecast Shop Price figures from the British Retail Consortium and smaller-than-anticipated increases in UK Manufacturing and Industrial Production.
The BRC Shop Price data showed a 15th consecutive month of deflationary prices. In the report it was stated; ‘Against a backdrop of stable commodity markets, the stronger Sterling making imports cheaper and wavering retail spending, current levels of deflation are expected to continue. While this is great news for consumers, trading conditions across the industry remain challenging. Structural changes in retail are challenging existing business models which in many cases are squeezing margins while other costs, such as business rates, continue to rise.’
Pound Sterling to Indian Rupee Exchange Rate Forecast
The Pound Sterling to Indian Rupee (GBP/INR) may remain bullish for the rest of the European session.
While the upcoming Scottish referendum and the prospect of an easing in the pace of domestic growth is keeping the Pound under pressure, if US fundamentals continue to impress the Rupee is unlikely to recover its footing. Today’s US Trade Balance data could have a moderate impact on the pairing.
Indian data is lacking until Friday.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trading in the region of 102.5270.
UPDATED 07 August, 2014
Pound Sterling to Indian Rupee Softer after RBI Intervention
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate lost ground on Thursday after the Indian Government increased the cap on foreign investments.
The Rupee was also able to recover some of its recent losses against the US Dollar.
As the day continues a lack of economic reports for India means that Rupee fluctuations will occur in response to the global economic developments, including the Bank of England’s interest rate decision and the US Initial Jobless and Continuing Claims figures.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 103.4600.
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,103.3970,
US Dollar,,Indian Rupee,61.3700,
Euro,,Indian Rupee,81.9540,
Australian Dollar,,Indian Rupee,57.1650,
New Zealand Dollar,,Indian Rupee,51.6590,
[/table]
Comments are closed.