The Pound Sterling to Indian Rupee (GBP/INR) exchange rate declined on Tuesday even as the Pound was supported by positive UK Services PMI.
The Rupee rallied against several of its major currency counterparts following the Reserve Bank of India’s (RBI) interest rate decision.
The US Dollar to Indian Rupee exchange rate also softened during the local session.
For a third meeting the RBI opted to leave interest rates unchanged, with the benchmark repurchase rate being left at 8% – as anticipated by the majority of economists.
In a statement following the decision RBI Governor Raghuram Rajan remarked; ‘The RBI in no way will hold rates high any longer than necessary. Growth will be the most benefited if we disinflate the economy and we don’t have to fight this fight again. Let’s fight the anti-inflation fight once and lets win. That will create the best conditions for sustainable growth’.
The decision to leave policy on hold was in part due to the actions taken by India’s Prime Minister Narendra Modi, who attempted to counter the adverse impact of the unseasonable monsoon by releasing food stocks.
The Pound Sterling to Indian Rupee exchange rate fell to a low of 102.2600.
Meanwhile, India’s Services PMI showed another increase in output growth. The HSBC Composite Index eased from a 16-month high of 53.8 to 53.0 in July, but was still indicative of impressive expansion in India’s private sector.
HSBC economist Frederic Neumann said of the result; ‘Growth in the services sector softened in July after a big jump in the previous month. Nevertheless, the sector recorded its third consecutive month of expansion, following several months of subdued activity. New business flows and business sentiment have moderated relative to the previous month too. Meanwhile, final prices were marked up at a faster pace to reflect rising costs, underscoring the need for the RBI to remain cautious about inflation risks.’
Although the Pound Sterling to Indian Rupee (GBP/INR) exchange rate declined, Sterling was bolstered against several of its other major currency counterparts as the UK’s Services PMI unexpectedly jumped to an eight-month high in July.
Pound Sterling to Indian Rupee Exchange Rate Forecast
The Pound Sterling to Indian Rupee pairing is likely to trend in its current range for the rest of the local session, however volatility in the GBP/INR exchange rate could occur tomorrow in response to the UK’s NIESR growth estimate and manufacturing/industrial output figures.
More upbeat UK news could see the Pound pare declines against the Rupee as the week continues.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trading in the region of 102.5270.
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,102.5300,
US Dollar,,Indian Rupee,60.7500,
Euro,,Indian Rupee,81.3970,
Australian Dollar,,Indian Rupee,56.6770,
New Zealand Dollar,,Indian Rupee,51.9400,
[/table]
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