After it was announced that Scotland had voted against independence, the Pound to Indian Rupee (GBP/INR) and Pound to Euro (GBP/EUR) exchange rates climbed.
Sterling achieved multi-month and multi-year highs against several of its most traded rivals following the decision.
The Pound had already edged higher on Thursday as hopes for a ‘No’ vote grew, and on Friday the 45% to 55% split in favour of unionists helped the British asset advance by as much as 0.8% against the US Dollar and over 0.6% against the Euro.
After the votes were tallied Alex Salmond asserted that he accepted the decision, but that ‘The unionist parties made vows and Scotland will expect them to be delivered in rapid course.’
GBP/INR Outlook
While the Rupee was trending in a slightly weaker position against the Pound, it was able to advance modestly against the US Dollar.
One industry expert commented; ‘Extending its rising streak for the fourth straight day, the Rupee strengthened by 10 paise to 60.74 against the Greenback in early trade on Friday at the Interbank Foreign Exchange market on continued selling of the Dollar by exporters.’
The Rupee’s gains were slight and short lived however as the US Dollar proved resilient. Yesterday’s impressive US initial jobless claims figures upped the odds of the Federal Reserve increasing interest rates in the near future. The ‘Greenback’ had been buoyed earlier in the week as the Fed positively revised its target interest rate forecast.
The Pound Sterling to Indian Rupee exchange rate hit a low of 100.6800.
While the Pound has trimmed some of the gains recorded in the immediate aftermath of the Scottish Referendum results, the currency may head into the weekend trending in a stronger position against almost all of its rivals.
GBP/EUR Outlook
After strengthening on Thursday in response to referendum hopes and ECB stimulus disappointments, the Pound to Euro exchange rate maintained its stronger position on Friday.
The Euro came under pressure as the European Central Bank’s Long Term Refinancing Operations failed to prove as popular as policymakers had hoped.
The GBP/EUR exchange rate hit a low of 1.2703.
On Friday morning Germany published its producer price data.
The figures showed a -0.1% month-on-month decline and a -0.8% annual drop. The data met forecasts, with declines being led by energy costs. According to Destatis; ‘These fell by 0.2% on the month and were down 3.1% on the year. Excluding energy, the index was flat on the month and increased 0.2% in the year.’
Separate data showed that the Eurozone’s current-account surplus widened slightly in July. The current account surplus rose from the 18.6 billion Euros recorded in June (the figure was positively revised from 13.1 billion Euros) to 18.7 billion Euros in July.
The GBP to EUR exchange rate could experience movement next week as the Eurozone publishes influential manufacturing figures and German releases the IFO Business Climate figures.
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, 99.7380,
US Dollar,,Indian Rupee,60.8825,
Euro,,Indian Rupee,78.3150,
Australian Dollar,,Indian Rupee,54.5550,
New Zealand Dollar,,Indian Rupee,49.5200,
[/table]
