The Pound Sterling to Indian Rupee (GBP/INR) exchange rate softened by around -0.43% on Monday morning.
With oil prices continuing to decline and no bottom in sight despite many US oil workers going on strike, the Indian Rupee advanced versus many of its major peers thanks to cheap imports. A slight downtick in domestic manufacturing output wasn’t enough to slow the Rupee’s advance.
The Pound Sterling, meanwhile, is generally softer versus the majority of its most traded rivals on Monday morning. This can be attributed to the Labour party edging the polls for the forthcoming general election. With a moderate approach to austerity in comparison to the Tories, and fears that they lack economic competence, the Labour party is considered bad for UK businesses. However, a better-than-forecast manufacturing PMI may spur a Sterling recovery.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 93.18000.
Pound Sterling (GBP) Exchange Rate Slumps on General Election Opinion Polls
As described above, the Labour party edging the polls caused trader anxieties amid fears that UK businesses will suffer under the left-leaning parties rule. Stefano Pessina, acting chief executive of the Walgreens Boots Alliance Inc, described Labour’s policies as ‘not helpful for business, not helpful for the country and in the end it probably won’t be helpful for them.[…]If they acted as they speak, it would be a catastrophe.’
There is the possibility for a Sterling recovery, however, after domestic data printed positively. The Markit Manufacturing PMI was forecast to edge higher from 52.5 to 52.7, but the actual result reached 53.0.
Rob Dobson, Senior Economist, stated; ‘The domestic market remains the main growth driver, as the UK economic recovery provides a steady stream of new business. There were also signs of improvement in overseas markets, with new export orders posting the first meaningful gain for five months, but it still looks as if lacklustre demand from the Eurozone in particular remained a headwind for British manufacturers. This could soon change, however, if quantitative easing by the ECB has the desired effect of boosting demand in the Euro area.’
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate dropped to a low today of 92.8770.
Indian Rupee (INR) Exchange Rate Advances despite Disappointing Manufacturing Output
Although several US refineries saw oil workers go on strike after failing to agree better working hours, oil prices continue to slide. ‘I’ve never seen a strike impact supply,’ said Tom Kloza, chief oil analyst at Oil Price Information Service in New Jersey. ‘There may be a generation of traders that react to it because they think refiners are going to cut back. But I think we’ll see a consistent level of demand from refineries.’
Low oil prices have somewhat micrified a disappointing result from Indian manufacturing which dropped from 54.5 to 52.9. Commenting on the India Manufacturing PMI survey, Pranjul Bhandari, Chief India Economist at HSBC said; ‘Manufacturing activity continued to signal improvement in January, though the rate of growth slipped to a three-month low. The slip can partly be attributed to consolidation after two months of impressive upticks.’
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Hold Losses
Although the better-than-anticipated British manufacturing output has the potential to initiate a Sterling uptrend, trader anxieties regarding the potential win for Labour is dominating focus. Therefore, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is likely to hold losses for the remainder of Monday.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate reached a high today of 93.5990.
