The Pound Sterling to Indian Rupee (GBP/INR) exchange rate was trending within a tight range on monday afternoon.
With an absence of domestic data to provoke movement, the Pound fluctuated versus its major peers on Monday. Sterling changes are as a result of fluctuations in the currency market, with a slight depreciation triggered by political uncertainties as the forthcoming general election bolsters investor reluctance.
The Indian Rupee, meanwhile, edged higher against the majority of its most traded currency rivals thanks to crude prices increasing. The gains were short-lived, however, after Indian data showed inflation had fallen further-than-expected.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 91.1500.
Pound Sterling (GBP) Exchange Rate Fluctuates on Political Uncertainties
With a complete lack of domestic data to drive changes for the British asset, fluctuations in the currency market have provoked movement for the Pound. With ongoing geopolitical difficulties in Greece and disappointing economic data out of China driving movement, the Pound is generally holding gains over high-yielding and risk-correlated currencies.
One contributing factor to the Pound’s lack of significant, sustained gains is ongoing political uncertainties weighing on trader confidence as the general election fast approaches. With little clue as to how the election will pan out, fears of a complete policy overhaul are preventing any significant investment.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate has fallen to a low of 90.8520 today.
Indian Rupee (INR) Exchange Rate Edges Higher on Crude Prices
With Iran’s crude export recovery remaining very much in doubt, prices strengthened despite the massive US supply glut. This aided the Rupee uptrend given that India is one of the world’s foremost crude importers. ‘There’s a realization that Iranian barrels won’t hit the market any time soon,’ Amrita Sen, chief analyst at consultants Energy Aspects Ltd., said by e-mail from London.
With geopolitics in Greece and poor Chinese economic data increasing demand for safe-haven assets, the US Dollar has strengthened versus many of its major competitors. This has seen emerging-market currencies, such as the Indian Rupee, soften in response.
India’s Inflation Rate came in at 5.17% on the year in March, below the median market forecast figure of 5.4%. This has seen the Rupee decline versus many of its major peers, a declination exacerbated by a stronger US Dollar.
Shilan Shah, Indian economist at Capital Economics, said: ‘Consumer price inflation unexpectedly dropped in March as concerns over the impact of heavy rains on food inflation proved unfounded. What’s more, core inflation remains low, and headline inflation is now comfortably below Reserve Bank’s near-term target. This has raised the possibility of an interest rate cut outside the scheduled review cycle for the third time this year.’
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Fluctuate
Although improving oil prices will likely cause the Indian Rupee to trend higher, domestic data has the potential to provoke volatility. Therefore, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is likely to fluctuate.
Tuesday will see heightened GBP/INR volatility thanks to several influential data publications pertaining to both nations. British inflation data will be of particular importance to those invested in the Pound given that the Bank of England (BoE) highlighted improved inflation as a pre-requisite to cash rate increases.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate reached a high of 91.3640 today.
