Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate higher as industrial production data weighs

The Indian Rupee fell against the Pound on Monday after data showed that the nation’s factory output contracted more-than-forecast in March.

Earlier in the session the Rupee climbed to its best-level in nine-months against the US Dollar and made gains against the Pound.

The currency found support from speculation that the nation’s main opposition party has won the general election.

The election began on April 7th and finished today. The final result won’t be known until May 16th.

Economists will be pleased that the opposition Bharatiya Janata Party will secure the most seats as they see a change in government as a chance for changes to be implemented in the Indian economy.

The Rupee then fell as the session progressed following the release of higher than expected inflation data and the latest industrial and manufacturing production reports.

According to the reports India’s consumer price inflation accelerated in April as higher food prices. The consumer price index climbed to 8.59% year on year, faster than the 8.31% recorded in the previous month and was more that the 8.5% being forecasted by economists.

Industrial production in the nation fell by -0.5%, a slower decline than the revised figure of -1.8% recorded in February.

The figure was worse than the forecast rise of 0.13%. Year on year manufacturing production was slightly improved but was still at -1.2% in March.

Economists had been forecasting for a figure of -1.37%.

“The new government will be inheriting a stagflation – type situation. Despite the contraction in output, the central bank will be forced to keep rates high due to inflation. The government has to lower subsidies and raise spending on energy, roads and ports to boost the economy,” said the chief economist at the Mumbai based Bank of Baroda.

Indian Rupee (INR) Exchange Rates

[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,,Indian Rupee,101.4060 ,
US Dollar,,Indian Rupee,60.0500,
Euro,,Indian Rupee,82.6768 ,
Australian Dollar,,Indian Rupee,56.2909 ,
[/table]