The Pound Sterling to Indian Rupee (GBP/INR) exchange rate ticked higher by around 0.20% on Tuesday morning.
After a Confederation of British Industry (CBI) report indicated strong UK growth in the first quarter, the Pound edged higher versus many of its major peers. The appreciation has been sluggish, however, with the report also showing that a strong Pound has weighed on exports, with growth still too reliant on the services sector.
The Indian Rupee, meanwhile, is holding relatively steady versus many of its most traded currency competitors. This was after the Reserve Bank of India (RBI) kept the cash rate on hold, in line with market expectations.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 92.8030.
Pound Sterling (GBP) Exchange Rate Strengthens on Q1 Growth
After CBI reported better-than-expected 1st quarter UK growth the Pound strengthened versus most of its major rivals. ‘The outlook for 2015 looks encouraging,’ said CBI’s deputy director general Katja Hall.
However, the report also had some negative points with regards to a surging Pound weighing on British exports. ‘The main risk to the UK economy comes from the Eurozone, with continuing wrangling over Greece’s bailout package stoking uncertainty,’ Katja added. ‘Plus, many businesses will also have to contend with a stronger Pound weighing down on already weak export growth.’
In addition to the CBI report, the Pound also gained after promising services data. The UK Services PMI was forecast to strengthen from 56.7 to 57.0, but the actual result reached 58.9.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate dropped to a low today of 92.5420.
Indian Rupee (INR) Exchange Rate Holds Steady on RBI
After the RBI met with market expectations in holding the cash rate, after having cut twice previously, the Rupee is holding reasonably steady versus many of its major peers. ‘Transmission of policy rates to lending rates has not taken place so far despite weak credit off take and the front loading of two rate cuts. With little transmission, and the possibility that incoming data will provide more clarity on the balance of risks on inflation, the Reserve Bank will maintain status quo in its monetary policy stance in this review,’ said Governor Raghuram Rajan in his statement.
‘The Monetary Policy Framework Agreement signed by the Government of India and the Reserve Bank in February 2015 will shape the stance of monetary policy in 2015-16 and succeeding years. The Reserve Bank will stay focussed on ensuring that the economy disinflates gradually and durably, with CPI inflation targeted at 6 per cent by January 2016 and at 4 per cent by the end of 2017-18,’ RBI said.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Trend Higher
Given that British data printed positively on Tuesday, and with oil prices holding above $50 a barrel, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is likely to continue trending higher over the course of the European session.
Wednesday could see GBP/INR volatility tail off a little given that the economic docket for both nations is relatively sparse.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate reached a high today of 92.9680.
