The Pound Sterling to Indian Rupee (GBP/INR) exchange rate consolidated declines on Thursday having plummeted in reaction to the UK’s poor wage figures and a less-than-encouraging Bank of England inflation report.
The Pound to Rupee exchange rate hit a low of 101.6500 and was little-changed following the publication of India’s Wholesale Price Inflation index.
India’s wholesale prices were shown to have fallen to a five-month low in July as fuel costs settled.
On the year, the Wholesale Price Index climbed 5.19% in July.
Economists had anticipated a year-on-year increase of 5.10%.
This report followed India’s retail inflation figure, which achieved a two-month high of 7.96 – well above the Reserve Bank of India’s long-term target of 6% and justifying the RBI’s decision to keep interest rates at elevated levels.
The unseasonable start to the monsoon has seen the cost of fruit and vegetables soar and inflationary pressures are looming, so as chief economist Rupa Rege Nitsure comments; ‘It is too early for the RBI to draw any comfort. They are likely to adopt a wait and watch approach for now.’
A lack of economic news for the UK kept the Pound Sterling to Indian Rupee exchange rate trending in a narrow range for much of Thursday.
That being said, the Pound did lose some of its appeal as one of the Bank of England’s main policymakers, David Miles, was quoted as saying that the BoE could afford to leave interest rates at record lows for a while longer.
His announcement saw Sterling slide to a four-month low against the US Dollar and depreciate further against several of its other main currency counterparts.
The US Dollar to Indian Rupee (USD/INR) exchange rate weakened on Wednesday in response to the disappointing retail sales data for the US and the pairing continued trending in a slightly softer position as a result of increased US Dollar selling among local banks and exporters.
Pound Sterling to Indian Rupee Exchange Rate Forecast
Tomorrow the main cause of volatility in the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is likely to be the UK’s second quarter growth data.
India’s trade balance figures will also be of interest.
Next week investors will be focusing on data out of the UK as those reports scheduled for publication in India are of low volatility.
Those most worth noting include the UK’s Rightmove House Price figures, the domestic Consumer Price Index, Retail Price Index and Producer Price Index, CBI Trends Total Orders figures, Retail Sales figures and Public Finance data.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trading in the region of 101.3600.
Pound to Rupee Exchange Rate Losses Linger Despite UK GDP Growth
The detrimental effect from a combination of poor UK average weekly wage and a dovish Bank of England inflation report was felt across the board yesterday, and as yet the negative sentiment has not abated.
The Pound to Indian Rupee hit a low yesterday of 101.6500, but today’s low has declined to 101.3200. Trader fears of a long delay to interest rate hikes have overshadowed this morning’s UK Gross Domestic Product (GDP) results, which were positive on the whole. Quarter-on-quarter GDP met with the forecast figure of 0.8% and year-on-year GDP was seen to exceed expectation; posting a result of 3.2%.
Today’s Indian Foreign Reserves data is unlikely to have any significant impact on the Pound to Indian Rupee exchange rate.
Indian Rupee (INR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
,Indian Rupee,101.5020,
US Dollar,,Indian Rupee,61.8250,
Euro,,Indian Rupee,81.3390,
Australian Dollar,,Indian Rupee,56.6710,
New Zealand Dollar,,Indian Rupee,51.7030,
[/table]
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