UPDATE
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate ticked lower by around -0.1% on Wednesday morning.
With a complete absence of economic data publications to provoke changes for the British asset, the Pound is generally holding steady versus its major peers. Positive comments with regards to interest rates from Monetary Policy Committee (MPC) member David Miles had minimal impact on the Pound given that Miles is due to leave the MPC before the next vote on interest rates.
The Indian Rupee, meanwhile, edged higher versus its currency rivals as crude prices remain low. With an absence of data to provoke volatility, the Rupee will be subject to market sentiment and commodity prices. The current US Dollar downtrend, albeit fractional, is also aiding the Rupee’s appreciation.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 102.3300.
Yesterday…
GBP Exchange Rate Climbs as Rising Inflation Stokes BoE Rate Hike Bets
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate advanced by around 0.5% on Tuesday morning.
On Monday, the British Pound softened as traders prepared for a disappointing inflation result. However, Tuesday’s Consumer Price Index bettered estimates and caused the Pound to rally versus all of its most traded currency rivals. July’s Consumer prices came in at 0.1% on the year; moving away from the median market forecast flat line figure. Additionally, July’s Core Consumer Price Index came in at 1.2% on the year; eclipsing the market consensus of 0.9%.
Jeremy Cook, chief economist at the international payments company Worldfirst.com, stated; ‘Inflation is positive in the UK, and positive for the UK. A period of ultra-low inflation is an obvious benefit for the UK economy – i.e. almost non-existent price rises in goods and services that consumers must buy, such as food and energy – frees up more disposable income elsewhere. It will also allow people to pay down debt and replenish savings that may have needed to be used during leaner times. This has been the driver of the UK recovery.’
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 102.5500.
INR Exchange Rate Edges Higher on Low Crude Prices
Although the situation in China had a significant impact on Asian emerging markets, the Rupee strengthened versus many of its peers on Tuesday morning. This is partly the result of the fact that the People’s Bank of China (PBoC) has now stabilised the Yuan. Additional Rupee gains can be linked to significantly low oil prices.
‘Oil prices are trading slightly lower this morning mainly on recent indications of weakening Asian economies, a Dollar on the rise and crude supply glut,’ said Michael Poulsen, oil analyst at Global Risk Management. Low crude oil prices are positive for the Indian economy because India is one of the world’s foremost crude importers, so cheaper prices are acting like a tax cut and keeping inflation comparatively low.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate dropped to a low of 101.6200.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Hold Gains on BoE Bets
Given that the improvement in the UK’s consumer prices is likely to stoke rate hawks looking for a near-term Bank of England (BoE) rate hike, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is likely to hold gains for the remainder of Tuesday’s European session. An absence of further domestic data publications will also see the GBP/INR hold gains.
A complete absence of both US and British economic data on Wednesday could see the paring trade statically. However, commodity price fluctuations and ever shifting market sentiment is likely to dominate GBP/INR trade.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate climbed to a high of 102.5500 during Tuesday’s European session.
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