This week’s encouraging UK data helped the Pound enjoy a bullish relationship with the Rupee for much of the week. However, with the UK trade report showing that the nation’s deficit widened to the most for over 12 months in the third quarter, Sterling pared its five-day gain against the Indian asset.
The Pound Sterling to Indian Rupee Exchange Rate was in the region of 100.6610 as of 10:30 GMT
Services, manufacturing and construction PMI for the UK all point towards the nation’s economic recovery broadening and stabilising in the fourth quarter, but after the recent stream of impressive data this trade deficit news is disappointing.
Exports dropped by 3.5 per cent while imports rose 1 per cent, reaching a record 135 billion Pounds, with the total deficit increasing from 5.46 billion Pounds to 9.72 billion Pounds.
Separate data showed that UK construction output declined by 0.9 per cent in September, month-on-month, instead of climbing 1.5 per cent as forecast.
However, while the lacklustre reports dented the Pound’s appeal and saw the currency pare its five-day gain against several of its counterparts, it continues to trade strongly against the Rupee.
While economic data for India has been a little thin on the ground this week, the Rupee (along with its fellow Asian currencies) has broadly weakened as a result of Federal Reserve tapering speculation.
The Pound Sterling to Rupee (USD/INR) exchange rate hit a high of 101.0700
Impressive US growth data increased the odds of the Fed tapering stimulus before next spring, and if today’s US non-farm payrolls also surprises to the upside the emerging-market Rupee could fall further against the ‘Greenback’.
As one Singapore-based industry expert observed; ‘Asian currencies declined this week as markets think the Fed will scale back its stimulus earlier than expected. Flows are not coming back.’
The Rupee slipped to a five-week low against the US Dollar during the local session.
Indian data to look out for next week includes the nation’s trade balance, inflation and manufacturing/industrial production reports.
Additional GBP/INR movement could also be triggered by UK inflation and employment figures, due for publication on Tuesday and Wednesday respectively.
Current Rupee (INR) Exchange Rates:
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The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 100.6610 >
The Euro/Indian Rupee Exchange Rate is currently in the region of: 84.0928 >
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 62.7120 >
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.2323 >
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 52.3002 >
The Canadian Dollar/Indian Rupee Exchange Rate is currently in the region of: 59.9560 >
(Correct as of 10:30 GMT)
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