The Pound Sterling to Indian Rupee (GBP/INR) exchange rate advanced by around 0.19% on Tuesday morning.
With the US Dollar stronger amid speculation that the Federal Reserve will be the first major central bank to hike rates, emerging market currencies slumped. This, therefore, caused the Indian Rupee to soften versus many of its major peers despite lower oil prices making for cheaper imports.
Conversely, the Pound advanced versus most of its major competitors despite a lack of data to provoke changes. This can be attributed to easing fears over a Grexit as the Eurogroup decides whether Greece’s programme of debt repayment will be accepted.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 96.1970.
Pound Sterling (GBP) Exchange Rate Holds Strong Position ahead of Eurogroup Decision
With Eurogroup officials set to make their decision today regarding the viability of Greece’s debt repayment scheme, the Pound is edging higher versus most of its major rivals. This is evidence that most traders feel that the decision will see Greece remaining in the Eurozone.
Anxieties regarding a Brexit also eased with the mini victory for austerity potentially deterring anti-austerity voters in Britain. A recent media backlash against UKIP, a party determined to see the UK disassociated from the European Union, added to positive sentiment ahead of the UK general election.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate has fallen to a low of 95.8100 today.
Indian Rupee (INR) Exchange Rate Softens despite Low Oil Prices
Given that India imports two-thirds of its oil, low crude prices usually equate to a stronger Rupee. However, the black-gold depreciation has been somewhat micrified by speculation that the Federal Reserve will retire dovish rhetoric with regards to a cash rate increase.
Geopolitical tensions in Greece, Syria, Libya and Ukraine has seen heightened demand for safe-haven assets. This also bolstered the US Dollar, which aided the Indian Rupee downtrend.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Hold Gains
With market sentiment dampened amid low oil prices and geopolitical upheaval, and with the US Dollar strengthening, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is likely to hold gains for the remainder of Tuesday. There is, however, potential for fluctuations depending on changes in commodities and the reaction from US data.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate advanced to a high of 96.3300 today.
