Pound to Indian Rupee (GBP/INR) Exchange Rate News – Rupee Trims advance as Pound Buoyed by UK news

Yesterday’s lacklustre US manufacturing figures and better-than-forecast Indian manufacturing output data helped the Rupee stage a modest rebound against the US Dollar and trade in the region of 62.5 – 63 Rupee per Dollar.

The Indian asset was also stronger against a broadly struggling Pound following the release of less-than-impressive UK data.

But Sterling was able to advance on the Rupee during local trading as a measure of UK construction activity surged by the most since 2007.

The construction report also showed the most rapid pace of domestic home building for a decade.

A statement published with the UK figures commented that the survey ‘provides reassurance that the UK construction recovery remains on track. Housing activity growth now stands at its strongest for just over a decade, boosted by growing demand for new homes and improving confidence within the UK property market.’

One investor warned that if the Rupee fell beyond 63 per Dollar the Reserve Bank of India might intervene and exporter Dollar selling could occur.

However, if today’s US factory orders report shows the decline predicted the Rupee could extend gains against the ‘Greenback’.

Economists have forecast that factory orders in the world’s largest economy fell by 1.8 per cent in December, wiping out November’s 1.8 per cent gain.

The US ISM New York gauge will also be of interest.

Tomorrow Rupee movement may occur in response to the release of India’s HSBC/Markit Services PMI.

The measure of non-manufacturing activity came in at 46.7 in December, below the 50 mark separating growth from contraction, so a positive result would be beneficial to both India’s economic outlook and the Rupee’s exchange rate.

UK services PMI may also have an impact on the GBP/INR pairing. As the services sector contributes the most to British GDP investors will be hoping for another month of strong expansion in January.