The Pound Sterling to Indian Rupee (GBP/INR) exchange rate strengthened by around 0.27% on Monday morning.
After India’s wholesale price index declined in January thanks to tanking oil prices, the Rupee softened versus the majority of its most traded currency rivals. The recent oil price resurgence is also weighing on the Indian asset thanks to more expensive imports.
The Pound Sterling, meanwhile, fluctuated against its major peers on Monday morning as a result of mixed house price data. Sterling is managing to hold in a position of strength, however, thanks to speculation that the Bank of England (BoE) will be one of the first central banks to hike the benchmark cash rate.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 95.8350.
Pound Sterling (GBP) Exchange Rate Fluctuates on Mixed Data
After Bank of England (BoE) Governor Mark Carney hinted that a rate hike was imminent despite low inflation, the Pound was generally holding in a position of strength versus the majority of its most traded currency competitors. With low inflation linked to cool crude prices, optimism that the issue is only temporary is fuelling speculation.
Monday’s domestic data, however, caused Sterling to fluctuate against many of its peers. Year-on-year Rightmove House Prices dropped from 8.2% to 6.6% in February. On a monthly basis, house prices advanced from 1.4% to 2.1%.
‘The UK is in good shape compared with other economies, with both investment and household spending underpinning economic growth,’ CBI economics director Rain Newton-Smith said. ‘But there are still risks to exports from a shaky Eurozone.’
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate has fallen to a low of 95.5600 today.
Indian Rupee (INR) Exchange Rate Forecast to Soften as Oil Prices Rise
Low oil prices have been a double-edged sword for India. As one of the foremost importers of black-gold, India benefitted from cheap imports. This caused the Rupee to strengthen versus commodity-correlated currencies. However, the plummeting oil prices have also had a detrimental effect on the wholesale price index, causing the Rupee to decline on Monday.
The year-on-year Wholesale Price Index was expected to improve upon the previous figure of 0.11%, but the actual result dropped to -0.39%. ‘WPI inflation continues to be held down by lower commodity prices and a stable Rupee,’ said Mumbai-based economist A. Prasanna.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Hold Gains
With an absence of domestic data to provoke changes, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is likely to hold gains for the remainder of Monday. Tuesday is likely to see significant Sterling volatility with the Consumer Price Index due for publication. India’s economic docket will be empty on Tuesday, with oil prices and geopolitical developments likely to be the driving force behind Rupee movement.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate climbed to a high of 96.0800 today.
