After enduring a sustained bearish run over the past week or so, the Pound managed to rebound on Wednesday after British labour data printed above expectations. Thursday has seen an extension of those gains after Hawkish Bank of England policymaker Martin Weale called for a benchmark rate increase. Meanwhile, the Indian Rupee has been steadily gaining against its major peers irrespective of domestic data. This can be attributed to cheap oil imports as global oil prices slump to record-lows.
The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 98.8429.
Wednesday’s British economic data allowed Sterling to recover from a long period of declination. In terms of the pressure added to the Bank of England to hike rates, the fall in unemployment and rise in average wages are of the most significance.
With an absence of Indian data on Wednesday the Rupee continued to strengthen as crude oil declines persisted. ‘Oil is languishing in a bear market, with the International Energy Agency predicting the lowest demand growth since 2009. The Organization of Petroleum Exporting Countries boosted output in September to the highest in 13 months,’ writes Laura Clarke, a Bloomberg journalist.
The Pound Sterling to Indian Rupee exchange rate has fallen to a low today of 97.1707.
A lack of economic data hasn’t stymied Sterling gains on Thursday after Bank of England policymaker Martin Weale made a hawkish speech late on Wednesday evening. In the speech Weale called for a benchmark rate increase in anticipation of inflationary pressure caused by improved unemployment.
‘The tightening of the labour market means that, instead of waiting to see wage growth pick up, I think it is appropriate to anticipate that wage growth, Weale says. ‘If the bank rate is already at its floor it cannot be reduced to offset any impact of this on demand,’ he continued. ‘Thus…it might be necessary to look through price changes less than fully on the downside.’
Despite a continuation of the oil bear market, the Indian Rupee has softened against many of its most traded currency competitors on Thursday. This is possibly as a result of the fact that the cheapest OPEC crude since 2009 is still too costly for India.
‘Obviously the Middle East producers want to retain market leadership in Asia,’ said B.K. Namdeo, the refineries director at Hindustan Petroleum, India’s third-largest state refiner. ‘Availability is one thing, but the customers must get the price advantage as well.’
Forecast for the Pound to Indian Rupee Exchange Rate
A lack of British domestic data on Friday is likely to see the Pound maintain its positive run. However, a speech by BoE’s Sir Jon Cunliffe later on Thursday could cause Sterling volatility.
Friday’s Indian data has the potential to provoke changes for the Rupee. Deposit Growth, Foreign Reserves and Bank Loan Growth all have the influence to spark Indian Rupee movement.
The Pound Sterling to Indian Rupee exchange rate has climbed to a high today of 98.9754.
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,0.0161,
Indian Rupee,,Euro,0.0126,
Indian Rupee,,Pound,0.0101,
Indian Rupee,,Australian Dollar,0.0185,
US Dollar,,Indian Rupee,61.8549,
Euro,,Indian Rupee,78.87680,
Pound Sterling,,Indian Rupee,97.9197,
Australian Dollar,,Indian Rupee,53.7859,
[/table]
