The GBP INR exchange rate dipped this morning as the UK Supreme Court finally delivered its judgement on the government’s ‘Brexit’ battle.
Pound (GBP) Drops as Scotland Denied ‘Brexit’ Vote
The Pound (GBP) Indian Rupee (INR) exchange rate slipped today as the Supreme Court ruled that the UK government would have to face a parliamentary vote before it could trigger Article 50.
While this was the preferred outcome for investors who seek a softer ‘Brexit’ than outlined in Theresa May’s speech last week, they were dismayed to learn that the Court judgement denied the right for devolved governments to be given a vote. As the Court explained;
‘The devolution Acts were passed by Parliament on the assumption that the UK would be a member of the EU, but they do not require the UK to remain a member.’
Not only does this deny the SNP – the third largest party in the UK by number of MPs – the right to fight against ‘Brexit’ but it makes a second Scottish referendum even more likely after the country voted overwhelmingly to remain in last year’s EU referendum.
Trump Concerns Soften Indian Rupee (INR)
However, the Indian Rupee remains weakened by fears that Donald Trump’s rush to scrap various trade agreements could impact India and other emerging markets.
Trump announced that he would be imposing heavy tariffs on goods from outside of the US on Monday as the new President seeks to protect US businesses from the threat of cheap foreign goods.
Investors are also concerned that the Reserve Bank of India (RBI) could be prompted to lower interest rates even further in order to shore up India’s economy if global risk appetite remains subdued by Trump’s protectionist policy plans.
GBP INR Exchange Rate Forecast: UK GDP Report Ahead
The GBP INR exchange rate may slide further on Thursday following the release of the UK’s latest GDP figures. Economists expect that the fourth quarter report to show that the British economy grew 2.1% in 2016, lagging behind the previous year’s growth rate of 2.2%.
However an expected drop in India’s Foreign Reserves could cause the Indian Rupee to slump at the end of the week, allowing the Pound to recover.
Current Interbank Exchange Rates
At the time of writing the GBP INR exchange rate was trending around 85.07 and the INR GBP exchange rate was trending around 0.01.
Comments are closed.