Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Rallies, USD/INR Sheds 0.4%

The Pound Sterling to Indian Rupee (GBP/INR) exchange rate advanced by 0.5% on Monday thanks to positive UK news and managed to achieve a high of 102.9700.

Last week the Pound recorded five-day declines against the majority of its currency counterparts as several economic reports for the UK fell short of forecast levels.

The less-than-impressive UK Consumer Confidence, Manufacturing and House Price figures all had a negative impact on Bank of England rate hike bets and pushed the Pound lower against its peers.

However, this week began more positively for the UK, with the nation’s Construction PMI surprising expectations and failing to decline by as much as anticipated.

The measure for July eased from a four-month high of 62.6 in June to 62.4 – economists had anticipated a reading of 62.0.

The report showed that job creation rose to record levels while construction output jumped markedly and residential construction continued to perform well.

Markit economist Tim Moore said this of the report; ‘July’s figures suggest the UK construction sector is enjoying its strongest cyclical upswing since the global financial crisis, while a new record rise in employment highlights that construction firms are increasingly confident about the sustainability of the upturn.’

Although the Rupee weakened against the Pound, it was able to advance modestly against the US Dollar.

The Rupee strengthened against its US counterpart, climbing by the most impressive amount for three weeks, as Friday’s slightly disappointing US Non-Farm Payrolls figure reduced the odds of the Federal Reserve increasing interest rates in the immediate future.

The US was expected to add 230,000 positions in July but it actually only added 209,000 jobs.

The US Dollar to Indian Rupee (USD/INR) exchange rate climbed by 0.4% during the local session and currency analyst Anindya Banerjee commented; ‘US non-farm payrolls numbers, which were not upbeat, have become an excuse for leaving Dollar longs and that has spilled over into Asian markets.’

Tomorrow movement in the GBP/INR exchange rate could be caused by India’s HSBC Services PMI and the Reserve Bank of India’s interest rate decision. The UK’s Halifax House Price figures and Services/Composite PMI will also have an impact.

The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trading in the region of 102.6710.