The Pound (GBP) to Indian Rupee (INR) exchange rate fell on Friday after a new poll on the upcoming Scottish referendum showed that the outcome of the vote would be too close to call and as Indian custodian banks embarked on a bout of heavy selling of the US Dollar (USD).
Previously the Pound had managed to recover some of ground after it declined sharply earlier in the week from the publication of a poll on Wednesday that showed that the No to Independence campaign had retaken the lead over the yes, pro independence campaign.
On Friday a new poll spooked the markets as it showed that the voting intentions of the Scottish people would mean that the referendums outcome would be too close to call. As a result, Sterling fell against a number of peers.
News that Bank of England Governor Mark Carney and Chancellor of the Exchequer George Osborne would be returning from a trip from Australia early to be in the county on September 18 also caused some concern over the possible impacts of a yes vote.
‘It is important I do not go to the G20 meeting due to the economic risks of the Scotland vote. If Scotland separates it will be bad economic news for the whole UK,’ said George Osborne.
Sentiment was further dented by the release of a report, which showed that Construction output stagnated last month. U.K. construction output was flat in July, compared to expectations for a 0.7% rise, after an increase of 1.2%.
The Rupee was able to make gains against the Pound and other peers despite the publication of data, which showed that industrial production in the country hit its lowest level in four months in July and that inflation remained high.
The report showed that output from the nation’s mines, utilities and factories grew by a much slower-than-expected 0.5% year-on-year, government data showed on Friday, down from June’s revised 3.9% rise.
Manufacturing production meanwhile dropped from June’s figure of 1.8% to -1.0% in July on an annual basis.
Despite the data, the Rupee still managed to post its biggest single day gain in close to a month as banks aggressively sold off the US Dollar.
Pound Sterling to Indian Rupee Exchange Rate Forecast
The GBP/INR exchange rate is forecast to remain volatile next week as the world awaits the result of the Scottish Referendum. Any indications that support for independence has grown will likely see the Pound drop sharply; if the opposite occurs then it will likely strengthen.
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,0.0164 ,
Indian Rupee,,British Pound,0.0101 ,
Indian Rupee,,Australian Dollar,0.0181 ,
Pound Sterling,, Indian Rupee,98.6594 ,
Euro,, Indian Rupee,78.7024 ,
US Dollar,, Indian Rupee,60.8097 ,
[/table]
