The Pound Sterling to Indian Rupee (GBP/INR) exchange rate was trending within a limited range on Wednesday afternoon.
With a complete absence of British economic data to provoke Sterling volatility, the Pound softened versus most of its major peers. The depreciation is as a result of political unknowns as opinion polls are showing no clear majority in the forthcoming general election.
The Indian Rupee, meanwhile, declined versus many of its most traded currency rivals after domestic data produced mixed results erring towards the negative. Further Rupee declination can be attributed to rising crude prices.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 91.9800.
Pound Sterling (GBP) Exchange Rate Cools on Lack of Data
Although a complete absence of domestic data doesn’t guarantee that nation’s currency will decline, the Pound softened with nothing to curb the downtrend initiated by political unknowns. With Thursday’s economic docket just as sparse in terms of British data, there is a high potential for the Pound to continue its bearish run.
The forthcoming general election is the catalyst for the Pound’s depreciation as investor confidence is hindered by political uncertainties. With opinion polls providing varied results, and with no clear majority for any party, traders fear that the UK will undergo a significant policy shift which could lead to an exit from the European Union.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate has fallen to a low of 91.7290 today.
Indian Rupee (INR) Exchange Rate Declines on Mixed Data
India’s economic data produced mixed results on Wednesday, causing the Rupee to soften versus many of its most traded currency competitors. March’s WPI Inflation came in at -2.33% on the year, failing to meet with the median market forecast of -1.37%. Yearly WPI Food showed growth of 6.31% in March, down from the previous score of 7.7%. WPI Fuel declined by -12.56% on the year in March, a slight improvement from the previous figure of -14.7%. WPI Manufacturing declined by -0.19% in March on the year, failing to better the previous output of 0.33%.
‘Whichever way you look at it (inflation), you will see very benign numbers for a significant period of time,’ said Sidhartha Sanyal, Chief India Economist at Barclays.
Also aiding the Rupee downtrend is higher crude prices. The rising prices are mainly as a result of speculation that US shale oil output will decline significantly. ‘We believe that US shale oil output is already falling, and that current rig counts imply that the month-on-month decline will exceed 70,000 barrels a day by June,’ Paul Horsnell, head of commodities research at Standard Chartered, said in a report.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Hold Steady
Given the lack of data to curb the trend, and with oil prices showing no signs of resuming declination, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is likely to hold steady for the remainder of the European session on Wednesday.
A complete absence of domestic data pertaining to either nation on Thursday should see GBP/INR volatility cool somewhat.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate reached a high of 92.2970 today.
