While the Pound Sterling to Indian Rupee exchange rate didn’t exactly surge on Wednesday, the pairing was able to recover some of its recent losses during the European session. The GBP/EUR exchange rate also strengthened in response to UK developments.
The Pound Sterling to Indian Rupee exchange rate hit a low of 99.1510.
Sterling strengthened against the Rupee after the UK’s unemployment rate was shown to have fallen to a fresh six-year low and the level of average wage growth increased by slightly more than expected.
The fact that the Bank of England meeting minutes confirmed a 2-7 split interest rate vote was also Pound beneficial, as was increased bets that Scotland will vote against independence when the voting opens tomorrow.
Over the past week a plethora of polls have shown conflicting results, but the majority put pro-unionists ever so slightly ahead.
Leading bookies have also waded into the mix and seem to favour a ‘No’ vote.
However, the Pound’s gains against the Rupee were limited by the fact that the emerging market asset had been supported by the implementation of new stimulus methods in China.
Although some officials have expressed concerns that the quantitative easing style stimulus outlined by the People’s Bank of China is only a short term solution, the announcement bolstered emerging market assets.
Meanwhile, the Rupee managed to move away from a one-month low against the US Dollar as Dollar selling increased ahead of the Federal Open Market Committee’s interest rate announcement.
While some industry experts have bet that the Fed will adopt a more hawkish interest rate stance this time out, others are concerned that the central bank will stay as dovish as ever, and the ‘Greenback’ has come under pressure accordingly.
The safe-haven asset is fluctuating, and as economist Etsuko Yamashita comments; ‘Traders are reluctant to buy or sell the Dollar until they see the FOMC outcome. The market is on guard as there is no consensus view on how the statement will change.’
The UK’s data helped the Pound Sterling to Euro exchange rate rallied by over 0.25% during the European session to hit a high of 1.2595.
The Pound held gains against the Euro even as the Eurozone’s inflation data slightly exceeded expectations in August.
Consumer price inflation was shown to have risen by 0.1%, taking the year-on-year figure to 0.4% – slightly better than the 0.3% figure initially estimated.
The result still leaves inflation running well below the European Central Bank’s target levels.
Economist Frederik Ducrozet commented; ‘Every positive surprise is welcome in terms of market psychology and for the European Central Bank. But it is far from the kind of shift you need to rule out quantitative easing.’
A separate report showed stagnation in the level of construction output in the Eurozone in July, month-on-month.
The GBP/EUR exchange rate will be exposed to further volatility tomorrow after the Scottish vote on independence.
The GBP/EUR exchange rate hit a low of 1.2543.
Pound Sterling to Indian Rupee Exchange Rate Forecast
With Indian data lacking tomorrow, movement in the Pound to Indian Rupee exchange rate will be generated by any final developments ahead of the Scottish referendum. Any decisive shifts in sentiment will be focused on and investors will be taking a keen interest in concluding statements from key UK officials.
Volatility in the Pound to Euro (GBP/EUR) exchange rate could also be generated by the ECB allotting its Long Term Refinancing Operations tomorrow.
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, 99.3080,
US Dollar,,Indian Rupee,60.9175,
Euro,,Indian Rupee,78.9280,
Australian Dollar,,Indian Rupee,55.1830,
New Zealand Dollar,,Indian Rupee,49.8430,
[/table]
