The Pound Sterling to Indian Rupee (GBP/INR) exchange rate dived by around -0.75% on Wednesday. This can be attributed to a dovish Bank of England Inflation Report which has seen the Pound soften across the board. Indian Rupee gains, meanwhile, have occurred as a result of vastly improved factory output.
The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 97.2170.
Pound Sterling (GBP) Softens on Dovish BoE
Sterling fell and UK government bond futures gained on Wednesday after the BoE warned that inflation could fall below 1%. This caused traders to delay bets concerning the timing of a benchmark rate increase, despite domestic data indicating better-than-expected wage growth.
‘Sterling is getting hit because markets are pricing out any chance of a rate hike in Q3, next to Q4 and even Q1 2016,’ said Peter Kinsella, currency strategist at Commerzbank. ‘A lot depends on domestic data when the first rate hike will be, but it looks like (it) could drop towards $1.57.’
The Pound Sterling to Indian Rupee exchange rate has fallen to a low today of 97.0780.
Improved Indian Factory Output Boosts Rupee (INR)
Indian economic data printed positively on Wednesday. Yearly Industrial Production eclipsed the median market forecast of a rise from 0.4% to 0.78%, with the actual result showing a growth of 2.5%. In addition, Manufacturing Production was forecast to increase by 0.41%, but the actual result showed growth of 2.5%.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Hold in Low Position
With a lack of domestic data to provoke movement on Thursday, the GBP/INR exchange rate is likely to hold in its current position. However, further Sterling declination could occur if traders heighten speculation of a long delay to monetary policy normalisation.
The Pound Sterling to Indian Rupee exchange rate has climbed to a high today of 98.0330.
UPDATE
GBP/INR Exchange Rate Extends Losses on Pared Rate Hike Bets
The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 97.0310.
With the Bank of England inflation report causing the Pound to decline against all of its major peers, Sterling has continued trending lower across the board. This is as a result of futures traders delaying bets as to the timing of a Bank of England benchmark rate increase.
‘Sterling is getting hit because markets are pricing out any chance of a rate hike in Q3, next to Q4 and even Q1 2016,’ said Peter Kinsella, currency strategist at Commerzbank.
GBP/INR Exchange Rate Gains on Indian Inflation
The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 97.0780.
After Indian data on Wednesday indicated that the inflation rate had dropped below expectations, speculation that the Reserve Bank of India will have to stimulate inflationary growth has seen the Rupee decline against many of its rivals. This declination is in spite of falling gold and oil prices which has seen India gain from cheap imports.
Sterling, meanwhile, has generally fallen against its major peers after UK data printed disappointingly. The RICS House Price Balance was expected to drop from 30% to 25%, but the actual result dropped to 20%. As the only British data publication on Thursday, the poor housing data is likely to see Sterling continue to trend lower.
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,0.0130,
Indian Rupee,,Pound,0.0103,
Indian Rupee,,Australian Dollar,0.0186,
US Dollar,,Indian Rupee,61.3942,
Euro,,Indian Rupee,76.5345,
Pound Sterling,,Indian Rupee,97.0506,
Australian Dollar,,Indian Rupee,53.6379,
[/table]
