In spite of disappointing British trade balance data, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is very gradually edging higher. This is the result of a decline in Indian three-month offshore non-deliverable forwards.
The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 97.4850.
British Data Disappoints
Friday’s British trade balance data has printed particularly poorly, aiding a Sterling downtrend against most of its major peers. Visible Trade Balance was forecast to decline from -£8950 to -£9500, but the actual result fell to -£9821. Non EU Trade Balance was expected to equal the previous figure of -£3700, but the actual data showed a decline to -£4048. Total Trade Balance declined beyond the median market forecast of a drop from -£1768 to -£2300, with the actual result falling to -£2838.
The Pound Sterling to Indian Rupee exchange rate has fallen to a low today of 97.1440.
Rupee Declines on Non-deliverable Forwards
The Indian Rupee fell 0.3% this week and 0.2% on Friday according to prices from local banks compiled by Bloomberg. ‘Three-month offshore non-deliverable forwards dropped 0.2 percent today and 0.1 percent from Oct. 31 to 62.33,’ stated Kartik Goyal writing for Bloomberg.
Oil Price Cuts Prevent Huge Rupee Downtrend
With global oil prices continuing to drop, the Indian Rupee has avoided a significant softening from the declination in non-deliverable forwards. ‘The markets are front-running expectations of rate cuts,’ said N.S. Venkatesh, the Mumbai-based head of treasury at IDBI Bank Ltd. ‘With India being a net importer of oil, the drop in global crude prices is very positive for India as it will help reduce inflation and curb the budget deficit.’
Pound Sterling to Indian Rupee Forecast to Soften
Bank of England Governor Mark Carney is giving a speech on monetary policy in Paris today and there is a high chance the speech will contain dovish overtones. Should this occur, the GBP/INR exchange rate will decline.
The Pound Sterling to Indian Rupee exchange rate has reached a high today of 97.6690.
GBP/INR Exchange Rate Unchanged ahead of US Data
The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 97.4760.
With several influential US economic data publications due on Friday afternoon, the GBP/INR exchange rate has held relatively steady. A good result in US Change in Non-Farm Payrolls and Unemployment Rate would see the US Dollar surge, and emerging market currencies decline.
GBP/INR Edges Lower on Carney Warning
The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 97.3370.
Despite the fact that the speech in Paris, given by Bank of England Governor Mark Carney, had little to do with domestic affairs, his comments have seen heightened negative sentiment towards the Bank of England. This is because Carney warned other central bankers that tightening monetary policy could lead to financial market volatility.
The Indian Rupee, meanwhile, has strengthened a little thanks to an improvement in foreign reserves. Foreign Reserves increased from $314.18 billion to £$315.91 billion.
Indian Rupee (INR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Indian Rupee,
,US Dollar,0.0162,
Indian Rupee,,Euro,0.0131,
Indian Rupee,,Pound,0.0102,
Indian Rupee,,Australian Dollar,0.0188,
US Dollar,,Indian Rupee,61.4300,
Euro,,Indian Rupee,76.3174,
Pound Sterling,,Indian Rupee,97.3269,
Australian Dollar,,Indian Rupee,52.9273,
[/table]
