The Pound Sterling to Indian Rupee exchange rate has been particularly varied on Wednesday which is likely to be a combination of the shortage of domestic data for both countries, and the ongoing Indian coal scandal also known as ‘coal gate’.
The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 100.2300.
Last week has seen a somewhat two-faced Pound having softened and strengthened several times versus its major peers. The week ended badly from a UK economic perspective and the waning retail sales weighed heavily on demand for the Pound.
The hangover from last week’s generally negative UK domestic data results has continued on into this week and the Pound has been soft against the majority of the majors.
Despite the shortage of market moving data the Pound has fallen steadily across the board. This is likely to be a combination of the uncertainty surrounding the Scottish Referendum and the last negative Eurozone data publications. The strong trading relationship between the Eurozone and the UK means that any poor data from the Eurozone, particularly manufacturing data, is likely to dampen demand for Sterling.
In contrast; Indian domestic data was generally positive on Friday and the gains experienced remained consistent over the weekend. Year-on-year Deposit Growth increased by 13.9% compared with the 13.0% growth recorded previously. Foreign Reserves were also seen to have increased posting a growth of 319.4 billion from the previous figure of 319.35 billion.
The positive surge for the Indian Rupee was short-lived, however, after India’s Supreme Court declared on Monday that more than 200 coal mining licences were illegal. A further hearing is scheduled for next week to decide whether to fine the corrupt companies or reallocate the coal blocks.
Sasha Riser-Kositsky, an analyst at Eurasia Group, said he expected ‘most, if not all’ of the coal licences to be annulled. ‘This looks like it will become a big protracted mess that will hang over the sector for a long time,’ he said.
The uncertainty of the ruling has seen demand for the Indian Rupee wane. There has, however, been some stimulus from neighbouring Asian currencies as they benefit from the lack of demand for European currencies at present.
The Pound Sterling to Indian Rupee has hit a low today of 99.9100.
Forecast for the Pound to Indian Rupee Exchange Rate
The scant economic calendar this week will see very few influential data releases for either the UK or India.
Those invested in the Pound will be interested in the results from the Consumer Confidence Survey on Thursday, and Friday’s Nationwide House PX.
In terms of Indian domestic data Friday’s Gross Domestic Product data will be of exceptional importance both economically and for the strength of the Rupee. It is forecast to grow by 4.96% although the recent ‘coal gate’ scandal may well have offset the growth considerably.
The Pound Sterling to Indian Rupee exchange rate has reached a high today of 100.2700.
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