UPDATE
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate was trending within a limited range on Thursday morning.
With a complete absence of British data to provoke volatility, the GBP/INR exchange rate is likely to hold steady as traders await Indian trade data due for publication later on Thursday afternoon. With that being said, there is potential for movement in response to crude prices.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 100.3100.
Yesterday…
GBP/INR Conversion Rate Predicted to Rise despite Lower-than-Expected British Wage Growth
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate strengthened by around 0.9% on Wednesday afternoon.
Although British economic data produced varied results on Wednesday, the Pound advanced versus the majority of its most traded currency competitors. The appreciation can be linked to a surprise fall in unemployment from 5.5% to 5.4% in the three months through August. This was the lowest level of joblessness since 2008. This unexpected results overshadowed less ideal wage growth which came in below expectations.
‘Today’s labour force survey signals that there is very little slack remaining in the jobs market,’ said Dean Turner, an economist at UBS Wealth Management. ‘Rising wage pressures will likely prompt the Bank of England to hike interest rates soon, most likely in the first quarter of next year. However, tighter monetary policy is unlikely to derail the UK from its current growth trajectory.’
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 100.0900.
INR/GBP Exchange Rate Forecast to Dive despite Falling Crude Prices
Crude oil prices dived overnight in response to Chinese inflation data disappointing and the Shanghai Composite Index ending the Asian session over 0.9% down. However, the Rupee failed to advance despite significantly improving gold prices. The Rupee downtrend can be linked to September’s WPI Manufacturing contracting by -1.73%; well beyond the market consensus of -1.3% contraction. In addition, deflation remains a sore point after the WPI reading showed September’s inflation at -4.54%.
As well as speculation of weak demand from China, serious oversupply from Russia and OPEC nations have had a massive impact on crude prices. However, crude futures look a little more positive which is another reason for damp Rupee demand on Wednesday. ‘In terms of non-OPEC supply, the impact of lower oil prices on production has resulted in the supply growth forecast being downwardly revised to 720,000 barrels a day in 2015, some 600,000 barrels a day less than the initial forecast and well below the previous year,’ OPEC said in a recent report.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate dropped to a low of 99.0580 during Wednesday’s European session.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Hold Gains ahead of US Advance Retail Sales
With an absence of further domestic data to provoke changes, the Pound Sterling to Indian Rupee (GBP/INR) conversion rate is likely to hold gains for the remainder of Wednesday’s European session. With that being said, however, there is the potential for volatility in response to US Advance Retail Sales data. If US data produces disappointing results, the emerging-market Rupee could advance in response to trader risk-appetite. Additionally, disappointing US data would cause traders to delay bets regarding the timing of a Federal Reserve rate hike which would weigh on demand for the British asset. This is because most analysts agree that the Bank of England (BoE) will hold off hiking the cash rate ahead of the Fed.
Thursday is likely to see subdued Sterling trade with a complete absence of domestic data to provoke volatility. The GBP/INR exchange rate may see fluctuations in response to Indian trade balance data, however.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate climbed to a high of 100.4000 during Wednesday’s European session.
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