GBP/INR Exchange Rate Softens before UK Data
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate weakened on Tuesday as investors responded to a slightly disappointing UK construction report.
However, as the construction sector accounts for less than 10% of the UK’s total economic output, Pound losses were limited.
That being said, the GBP/INR exchange rate was almost 0.3% softer on Wednesday ahead of the release of the UK Markit Services PMI.
Pound Sterling losses were occasioned overnight as the British Retail Consortium’s (BRC) shop price index disappointed expectations and the currency continued to trend lower against the Rupee even as India’s Services PMI fell flat.
The HSBC Services Index dropped from 51.6 to 50.0 in October – taking the measure right to the line separating growth from contraction.
An increase to 52.6 had been anticipated.
In a statement issued with the data, Economic Researcher Frederic Neumann observed; ‘Service sector activity was unchanged in October since growth in some sectors was offset by contraction in others […] On the positive side, business confidence rose to the strongest in three months, with the hospitality sector being the most upbeat about the outlook. The revival of reforms post recent state elections, if sustained, should lift growth on a broad basis.’
The GBP/INR exchange rate fell to a low of 97.7530
USD/INR Exchange Rate Advances after Midterm Elections
Yesterday the US Dollar to Indian Rupee (USD/INR) exchange rate softened after data showed a widening in the US trade deficit.
The shortfall increased from 40.0 billion US Dollars to 43.2 billion US Dollars.
US factory orders figures were also disappointing, registering a -0.6% month-on-month decline in September.
However, the US Dollar staged a rebound as the US midterm elections saw Democrats lose control of the Senate. The Republican victory solidifies the party’s position and reduces the odds of policy conflicts.
The USD/INR exchange rate achieved a high of 61.4250.
GBP/INR and GBP/USD Exchange Rate Forecast: US ISM Non-Manufacturing PMI in Focus
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate could experience movement as a result of the UK’s Services PMI.
Investors with an interest in the US Dollar to Indian Rupee (USD/INR) exchange rate will be focusing on the US ISM Non-Manufacturing PMI. As the US services sector accounts for the greatest percentage of total economic growth, a disappointing result would be negative for the ‘Greenback’.
GBP/INR Trends Lower before BoE Interest Rate Decision
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate held declines as trading continued on Wednesday and investors looked ahead to tomorrow’s Bank of England (BoE) interest rate decision.
It is broadly expected that the central bank will opt to leave fiscal policy unchanged.
In fact, in light of the UK Services report published earlier today, the BoE is unlikely to adjust its outlook for some time to come. That fact may continue to weigh on the Pound in the weeks ahead.
Pound Sterling to Indian Rupee Exchange Rate Steady
While the Pound softened yesterday in response to disappointing UK Services PMI, the British currency recovered losses against several of its rivals before the Bank of England delivered its interest rate decision.
The GBP/INR exchange rate was trending in a narrow range, moving between highs of 98.2160 and lows of 97.8880.
With Indian data is short supply today, any volatility in the Pound Sterling to Indian Rupee exchange rate will be the result of news from the UK.
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, 98.1630,
US Dollar,,Indian Rupee,61.4900,
Euro,,Indian Rupee,76.7580,
Australian Dollar,,Indian Rupee,52.8260,
New Zealand Dollar,,Indian Rupee,47.5980,
[/table]
