As the Indian Prime Minister Narendra Modi pushes for economic reform, and with the British group that administers the London interbank offered rate pushing for the standardisation of libor calculation; the Pound to Indian Rupee exchange rate is holding within a tight range on Monday.
The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 98.8460.
Those invested in the Indian Rupee may be a little undecided as to Prime Minister Modi’s economic overhaul. Whilst the move has been seen as a positive by Indian citizens, economic reform is problematic and could see the Rupee exchange rate depreciate in the short-term.
Modi plans to pass a goods and services tax, open up to foreign investment and make subsidies for fertiliser, cooking gas and food more accessible to the poor.
‘The decision to scrap fuel subsidies and raise gas prices is a potential game-changer in the realm of investor perceptions of Mr. Modi’s commitment to undertake major fiscal and structural reforms,’ Nicholas Spiro, managing director of London-based Spiro Sovereign Strategy, said by e-mail. ‘The stronger the BJP is at the state level, the more scope there is for Mr. Modi to undertake meaningful reforms. Now the stars seem to be aligning for Mr. Modi.’
A lack of Indian data on Monday is likely to see the Rupee relatively static against its most traded currency competitors.
The Pound Sterling to Indian Rupee exchange rate has dropped to a low today of 98.4040.
Sterling, meanwhile, is holding relatively steady following a decision by the Intercontinental Exchange Inc. Benchmark Administration to attempt to standardise how the banks calculate their submissions.
In July global regulators fined at least nine firms around $6 billion (USD) after traders colluded to rig the rate and related benchmarks for profit.
‘It is in the interests of users of Libor and benchmark submitters alike that a more unified transaction-based methodology should be adopted,’ ICE Benchmark Administration said. ‘We therefore propose a more prescriptive calculation methodology with pre-defined parameters that our oversight committee will keep under review.’
Pound to Indian Rupee Exchange Rate Forecast to Hold
A lack of data pertaining to either the UK or India on Monday is likely to cause the GBP/INR exchange rate to hold within the current narrow range. It is possible that the Pound will soften on a controlled decline in the wake of mixed UK house prices data.
The Pound Sterling to Indian Rupee exchange rate has reached a high today of 98.9330.
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,0.0163,
Indian Rupee,,Euro,0.0127,
Indian Rupee,,Pound,0.0101,
Indian Rupee,,Australian Dollar,0.0186,
US Dollar,,Indian Rupee,61.3263,
Euro,,Indian Rupee,78.4173,
Pound Sterling,,Indian Rupee,98.9343,
Australian Dollar,,Indian Rupee,53.7718,
[/table]
