At the close of last week the Pound Sterling to Indian Rupee exchange rate surged in reaction to Scotland’s decision to stick with the UK.
While the prospect of unionists emerging victorious had been largely priced into the market on Thursday, the Pound was able to push higher still against the majority of its currency counterparts once the outcome of the referendum was announced.
The Rupee, meanwhile, had been feeling the heat as commodity prices faltered and the odds of the Federal Reserve increasing interest rates in the spring of next year increased.
On Monday the Pound continued trending in a stronger position against the Rupee.
Although investors have been a little concerned over the direction UK politics may take now, Sterling remains supported as the Bank of England’s interest rate-hiking time frame takes centre stage again.
As noted by currency strategist Sue Trinh; ‘With the vote now done and dusted, it’s going to offer Sterling a chance to actually trade with the fundamentals. We are still preferring to express a constructive Sterling view versus the likes of Euro.’
The Pound Sterling to Indian Rupee exchange rate hit a low of 99.2100.
The Rupee began the local session holding steady against the US Dollar as investors and financial institutions adopted cautious positions ahead of the Reserve Bank of India’s next review of fiscal policy – due to take place on the 30th.
According to one locally based trader; ‘Today has been really quiet. Initially there were some Dollar sales which had strengthened the Rupee but trade has settled down since. Everyone is awaiting the RBI’s monetary policy review.’
Similarly, a Standard Chartered official stated; ‘Expect the Rupee to trade in a range of 60.70-61/Dollar for the Day. Expect local banks to buy the USD below 60.80, hence putting a floor at 60.70. Exporters and capital inflows are expected to sell USD on any uptick towards 61.’
The Pound Sterling to Indian Rupee exchange rate hit a high of 99.5400.
GBP/INR Exchange Rate Forecast
Movement in the Pound Sterling to Indian Rupee exchange rate is likely to be dictated by UK reports this week as Indian data is decidedly lacking.
UK reports to be most aware of include Public Finance figures (due out on Tuesday), Nationwide House Price data (set for publication on Wednesday), the Confederation of British Industry’s Reported Sales number and the Hometrack Housing Survey.
Bank of England Governor Mark Carney is also due to speak in Wales on the 25th. A hawkish attitude from the central banker would see the Pound advance even further against peers like the Rupee.
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, 99.3230,
US Dollar,,Indian Rupee,60.8100,
Euro,,Indian Rupee,78.1420,
Australian Dollar,,Indian Rupee,53.9610,
New Zealand Dollar,,Indian Rupee,49.3900,
[/table]
