The Pound Sterling to Indian Rupee (GBP/INR) exchange rate ticked lower by around -0.22% on Thursday morning.
As traders await the Bank of England (BoE) inflation report, which most expect will show the British institution cutting its inflation rate forecast for 2015, the Pound is generally ticking lower versus the majority of its most traded currency rivals. The slight declination can also be attributed to a disappointing result from house price data.
The Indian Rupee, meanwhile, is generally edging higher against most of its major peers as traders await domestic inflation data. The fractional uptrend is as a result of oil prices plummeting below $50 a barrel and predictions that the price of the commodity will resume its previous bearishness.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 94.8520.
Pound Sterling (GBP) Exchange Rate Dips ahead of Inflation Report
With most traders expecting the BoE to cut their inflation forecast for 2015, thanks to tanking oil prices, the Pound is edging lower versus many of its major peers. ‘The Bank of England will obviously have to cut its near-term inflation forecasts sharply given that consumer price inflation fell sharply to a 14-month low of 0.5 per cent in December 2014 and looks certain to drop further in the early months of 2015 given that oil prices have fallen further overall,’ Howard Archer, of IHS Global Insight, said.
In addition to speculation of a dovish BoE, slightly disappointing data aided the Sterling depreciation. The RICS House Price Balance was forecast to hold at 12%, but the actual result dropped to 7%.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate has fallen to a low of 94.6380.
Indian Rupee (INR) Exchange Rate Edges Higher on Oil Prices
With Indian inflation data, industrial production and manufacturing production figures due for publication later on Thursday, the Rupee gained versus many of its most traded competitors. The advance is as a result of another downturn in oil prices with supply far outweighing demand.
‘The market will remain volatile in 2015, if only because for now, Opec (the Organisation of the Petroleum Exporting Countries) shows no sign of wanting to resume its role as swing supplier,’ Ben van Beurden, the chief executive of Royal Dutch Shell, said.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Fluctuate
With both the British inflation report and Indian data to be published, there is a high likelihood that the Pound Sterling to Indian Rupee (GBP/INR) exchange rate will be subject to volatility on Thursday. For those invested in the Rupee, Friday’s trade balance data will also be of interest.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate climbed to a high today of 95.2470.
