The Pound Sterling to Indian Rupee (GBP/INR) exchange rate advanced by around 0.98% on Tuesday afternoon.
After British economic data produced a positive set of results, the Pound strengthened versus the majority of it most traded currency competitors. The gains have been somewhat laboured, however, amid speculation that Prime Minister David Cameron will bring forward the European Union (EU) referendum in order to satisfy Euro-sceptic Tory back-benchers.
The Indian Rupee, meanwhile, softened versus its currency peers on Tuesday after domestic data failed to meet with expectations. Additional losses can be attributed to rising oil prices amid a softer US Dollar.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 100.6400.
Pound Sterling (GBP) Exchange Rate Forecast to Gain against US Dollar ahead of GDP Estimate
As traders await the British gross domestic product estimate, due later on Tuesday afternoon, the Pound edged higher versus the majority of its most traded currency rivals. The appreciation is as a result of industrial production reaching a 6-month high. On the year, Industrial Production gained by 0.7% in March; bettering the median market forecast figure of 0.1%. Yearly Manufacturing Production also eclipsed the market consensus in March having seen 1.1% growth.
Vicky Redwood, chief UK economist at consultancy Capital Economics, said that the figures ‘tentatively suggest that the recovery in the sector is starting to get back on track.’
David Kern, chief economist at the British Chambers of Commerce, said that while it was encouraging to see progress, the industrial sector was still ‘lagging behind’ other parts of the economy, in particular services. ‘The government must make every effort to support the manufacturing industry, particularly by encouraging more firms to explore international markets,’ he said.
Sterling gains were somewhat sluggish amid speculation that the EU referendum will be brought forward to 2016, but the government will allow George Osborne sufficient time to propose alterations to the relationship between Britain and the EU.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate dropped to a low today of 99.5030.
Indian Rupee (INR) Exchange Rate Forecast to Soften versus the Euro as Crude Prices Rise
Indian economic data produced disappointing results on Tuesday, which saw the Rupee dive versus most of its major peers. On the year, March’s Industrial Production saw 2.1% growth; failing to meet with the median market forecast 3.7% growth. However, Manufacturing Production in March gained by 2.2% annually, which bettered the market consensus of 0.33% growth. April’s inflation rate declined broadly in line with expectations, dropping from 5.25% to 4.87% on the year.
Economist Rupa Rege Nitsure said; ‘Both the industrial production growth and CPI inflation numbers are showing a huge disconnect from the leading indicators. Food price data from the Ministry of Consumer Affairs shows a sequential increase in prices of cereals, sugar, milk, edible oils, etc. But somehow this is not reflected in the actual retail inflation. A sharp decline in core inflation and favourable base has contributed to CPI moderation. One thing is for sure: growth has weakened considerably and the government somehow has to find out radical measures to move investment sentiment.’
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Hold Gains on Oil Prices Rise
With crude prices rising, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is likely to hold gains for the reminder of Tuesday’s European session. With that being said, however, the Pound could soften if the UK GDP estimate comes in lower-than-expected.
Wednesday will be significant for the GBP/INR pairing with the Bank of England (BoE) Inflation Report due for publication. Many expect that the BoE will use this as an opportunity to highlight plans for monetary policy under the Conservative government.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate advanced to a high of 100.8200 today.
Comments are closed.