The Pound Indian Rupee (GBP INR) exchange rate recovered from a seven-week low this morning as the UK posted its latest GDP estimate.
Pound (GBP) Rallies as UK Economic Growth Rises in Q2
The Pound managed to claw its way higher against the Indian Rupee today as the UK’s GDP rose in line with expectations in the second quarter.
According to figures released by the ONS, British economic growth rose from 0.2% 0.3% between April and June, in line with the previous estimate.
However the slight jump in growth still leaves the UK as the slowest growing G7 economy so far in 2017, with most analysts attributing the lacklustre growth this year to the vote to leave the EU and the subsequent uncertainty that has hung over the UK economy.
Samuel Tombs Chief UK economist at Pantheon Macroeconomics said;
‘The GDP figures show that the U.K. economy has been the slowest growing G7 economy this year because Brexit risk has dampened business investment and sterling’s depreciation has hurt consumers more than it has helped exporters.’
The accompanying Business investment figures also painted a gloomy picture of the UK’s future growth potential as the ONS reported that the risks posed by Brexit caused investment to remain flat in the second quarter.
Meanwhile the Indian Rupee struggled to find purchase today as currency markets began to trade in a narrow range ahead of the central bank summit in Jackson Hole, with investors reluctant to trade in the relatively risky Rupee as the heads of both the Federal Reserve and European Central Bank (ECB) prepare to make speeches on Friday.
GBP INR Exchange Rate Forecast: Lull in UK Data Ahead of House Price Figures on Wednesday
A lull in economic data for both countries may leave the GBP INR exchange rate a little directionless over the next few days, until Wednesday when the UK releases its latest Housing data, with Sterling possibly advancing if Nationwide reports a rise in UK house prices in August.
Meanwhile the Indian Rupee is expected to rise next Thursday as India publishes its own second quarter GDP figures, with economists forecasting that the emerging economy will have grown 6.5% between April and June, up from the 6.1% rise seen in the first quarter.
Current Interbank Exchange Rates
At the time of writing the GBP INR exchange rate was trending around 82.0352 and the INR GBP exchange rate was trending around 0.0122.
Comments are closed.