The Pound Sterling to Indian Rupee (GBP/INR) exchange rate strengthened by around 0.63% on Tuesday morning.
As traders speculate that Wednesday’s British labour data will produce positive results, the Pound strengthened versus most of its major peers. Aiding the uptrend is news that the Labour Party is focussing their electoral campaign on rebuilding the relationship between Britain and the European Union.
The Indian Rupee, meanwhile, softened against nearly all of its major rivals despite declination in oil prices. This is likely to be a result of the decision by the Reserve Bank of India (RBI) to allow banks to review their base rate methodology more often.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 93.5730.
Pound Sterling (GBP) Exchange Rate Strengthens ahead of Labour Data
Although British data publications are absent from Tuesday’s economic docket, the Pound strengthened versus most of its competitors. This is likely to be due to traders speculating that Wednesday’s labour market data will print positively.
Employment Change is forecast to add 74,000 additional jobs, and Unemployment is forecast to show a positive declination from 6.0% to 5.9%.
Aiding the Sterling uptrend is news that the Labour Party will focus their electoral campaign on rebuilding the relationship between Britain and the EU.
‘A key foreign-policy priority for an incoming Labour government will be to review, repair and reset relations with Europe upon entering office,’ Douglas Alexander will say on a visit to Paris Tuesday. ‘No country that seeks to play a leading part in the modern world could contemplate walking away from the world’s largest single market, or to cut itself off from some of its closest allies.’
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate dropped to a low today of 92.8290.
Indian Rupee (INR) Exchange Rate Softens on RBI Cuts
Given that the shock of the Swiss National Bank’s removal of the Euro cap dominated focus last Thursday, the RBI’s rate cut went somewhat unnoticed. However, the recent decision by the RBI to be more flexible with base rate revisions has seen the Rupee decline amid fears of an easing cycle.
Arundhati Bhattacharya, chairman of State Bank of India, said; ‘We believe that this RBI cut may be just the beginning of a rate easing cycle… Base rate is expected to fall faster than expected.’
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Extend Gains
With a complete absence of domestic data to curb the trend, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is likely to continue trending higher on Tuesday.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate advanced to a high today of 93.5220.
