GBP/INR Conversion Rate Predicted to Hold Steady on Absence of British Data
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate was trending within a limited range on Friday afternoon.
With a complete absence of British economic data to drive Sterling volatility, Pound trade has been subdued in the early stages of Friday’s European session. The lack of movement can also be attributed to dampened sentiment towards the Bank of England (BoE) after dovish comments from policymaker Ben Broadbent. Broadbent stated that he will argue for a benchmark rate hike delay in an environment of weak global growth. External shocks like the issues in China could have significantly detrimental ramifications for markets. This has caused many traders to delay bets as to the timing of a BoE rate increase to October 2016.
Broadbent stated; ‘It has been true for some time that we have been having to weigh up what has looked like a fairly robust recovery in domestic demand against weakness in the rest of the world. I was not one of those on the brink of voting for higher interest rates. It’s an entirely predictable reaction of markets (to delay rate hike bets)… We are certainly not unconcerned (but) we have pointed for a while to downside risks in the global economy.’
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 100.5900.
INR/GBP Exchange Rate Forecast to Trend Narrowly as Oil Prices Edge Higher
As traders await India’s Foreign Reserves data, the Rupee is generally holding steady versus its major peers. A fractional depreciation can be linked to slightly higher oil prices. However, oil futures are bleak with Chinas economic slowdown indicating a long period of damp demand for black gold. Low oil prices will support India’s economy which is predicted to show the strongest growth of all global economies over the coming decade.
Today, oil prices have ticked a little higher which reflects a drop in refined oil stocks in China ‘implying strong demand due to two months of consecutive price cuts,’ reported Reuters. But negative Japanese inflation has added to concerns regarding global growth and affected investor confidence, while general ‘oversupply that analysts estimate [is at] around 2.5 million barrels per day remains largely in place due to high production… in Russia and the Middle East.’
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate dropped to a low of 100.5400 during Friday’s European session.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Fluctuate on Oil Prices
Given the absence of British data, and the lack of influential data pertaining to India, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is likely to see volatility as a result of oil price changes. With that being said, India’s Foreign Reserves report has the potential to provoke Rupee movement if the result surprises significantly.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate climbed to a high of 100.6600.
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