The Pound Sterling to Indian Rupee (GBP/INR) exchange rate softened by around -0.34% on Wednesday afternoon.
After the Bank of England (BoE) published minutes from their most recent policy meeting, the Pound softened versus most of its major peers. This is as a result of the fact that all of the policymakers were unanimous with the decision to hold rates, a change from previous meetings which saw two of the policymakers calling for an immediate hike.
The Indian Rupee, meanwhile, strengthened against many of its peers as a result of low oil prices. However, many experts are predicting considerable volatility resulting from divergent policies between the major central banks.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 93.0800.
Pound Sterling (GBP) Exchange Rate Slides on Dovish BoE
With rate hawks once again disappointed by inaction from the BoE, the Pound dived versus nearly all of its most traded currency rivals on Wednesday. The latest minutes revealed that all of the policymakers opted to hold rates, a change from previous meetings which saw two dissenters from the general consensus.
‘The two hawks have rejoined the broader dovish camp within the MPC and that’s going to keep Sterling under pressure,’ said London based strategist Ian Stannard. ‘Although there are some improvements in some of the labour-market data, the pickup in the wages were disappointing; not really gaining the momentum the market has been looking for.’
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate has fallen to a low today of 92.8650.
Indian Rupee (INR) Exchange Rate Edges Higher on Oil Prices
With oil supply still outweighing demand, prices have the potential to decline to record-lows. This supports demand for the Indian Rupee as India benefits from vastly cheaper crude imports. However, many economists are predicting Rupee volatility amid divergent policy outlooks from major central banks.
‘The RBI is likely to face a challenging external environment in the coming months, with considerable capital flow and currency volatility resulting from the divergent policy stances of the major advanced economy central banks,’ says Eswar Prasad, Tolani Senior Professor of Trade Policy at Cornell University. ‘The RBI can best contribute to the stability of capital flows, exchange rates and growth by staying focused on its objective of low and stable inflation, in tandem with financial stability.’
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Hold Steady
Given the lack of significant domestic data to provoke volatility, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is likely to hold losses on Wednesday.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate reached a high today of 93.5770.
