The Pound Sterling to Indian Rupee (GBP/INR) exchange rate edged lower on Monday afternoon.
In the initial aftermath of Indian Gross Domestic Product data, the Rupee surged versus the majority of its most traded currency rivals. However, the previous figure was upwardly revised by quite an extent which saw the Rupee decline a little.
The Pound, meanwhile, is generally trending lower versus its major peers as a result of speculation that the Bank of England (BoE) will cut its inflation forecast for 2015.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 94.5132.
Pound Sterling (GBP) Exchange Rate Softens ahead of Inflation Report
With Thursday’s inflation report drawing closer, many analysts are expecting the BoE to cut their forecast for 2015 amid tanking oil prices. This is of particular concern given that the most recent inflation data came in at a record-equalling low of 0.5%.
Simon Wells, chief UK economist at HSBC, said the Bank’s new report ‘may be the first to show a central projection for inflation that is, in some quarters, negative. ‘It could be the BoE’s first deflation report.’
Mr Wells added: ‘Beyond 2015, inflation should bounce back as the impact of cheaper oil drops out of the annual comparison and, given faster growth, it is possible the MPC will nudge up its inflation forecast for 2017.’
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate has fallen to a low today of 94.4047.
Indian Rupee (INR) Exchange Rate Fluctuates on GDP
Initially, Indian Growth looked to have eclipsed the median market forecast, having risen from the previous figure. However, the previous figure was then upwardly revised to such an extent that growth was shown to have cooled from 8.2% to 7.5% between the third quarter and the fourth.
‘I am puzzled by the GDP growth numbers and, consequently, all the constituent elements that went into constructing it,’ said Arvind Subramanian, the Finance Ministry’s top economic adviser. ‘We have to be very careful in using these numbers for policy making.’
India ‘does not look and feel like a 7.5 percent growth economy,’ said Saugata Bhattacharya, an economist at Axis Bank Ltd. in Mumbai. ‘We don’t understand this growth very well; it will take a lot of triangulation.’
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Fluctuate
Given the confusion over India’s growth, there is heightened potential for the Pound Sterling to Indian Rupee (GBP/INR) exchange rate to fluctuate. There is a high likelihood of GBP/INR volatility on Tuesday, with several influential data publications for both nations. Of particular importance to those invested in the Pound will be the UK GDP estimate for the three months through January. For those interested in the Rupee, Indian trade balance data ought to have an impact.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate reached a high today of 94.9063.
