The Pound Sterling to Indian Rupee (GBP/INR) exchange rate advanced by around 0.3% on Wednesday afternoon.
Despite the fact that British services output declined beyond expectations, and oil prices continue to cool, the GBP/INR exchange rate advanced. This is mainly due to concerns regarding geopolitical tensions between India and Pakistan after an attack in Pathankot air base.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 97.8170.
GBP/INR Exchange Rate Soften despite Positive Construction Output
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate softened by around -0.4% on Tuesday afternoon.
Today’s solitary British economic data publication produced a positive result. December’s UK Construction PMI bettered the median market forecast rise from 55.3 to 56, with the actual result reaching 57.8. This eased some concerns regarding the UK’s lacklustre fourth-quarter sectoral growth. Despite this positive result, the Pound fluctuated versus its peers on Tuesday. This is likely to be connected to fears that British retail sales over the holiday period accelerated at a much slower-than-anticipated pace, as highlighted by the sales report from retail giant Next.
Commenting on the British construction report, David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, said: ‘Though commercial activity was the main driver of growth, the housing sub-sector remained strong, rejecting the previous 29-month low and showing solid steady increases overall since February 2013. Hirings in the construction sector also bounced back from November’s 26- month low and sub-contractors remained in demand to support increased workloads.’
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 97.5550.
INR/GBP Conversion Rate Predicted to Hold Losses on Weak Crude Prices
With a complete absence of domestic data to drive changes today, the Rupee has seen movement in line with crude oil prices. Crude prices extended losses today even after a breakdown of diplomatic ties between Saudi Arabia and Iran. Oil prices failed to rise in response to geopolitical tensions in the Middle East with the global oil glut continuing to swell and demand cooling. China’s most recent Manufacturing data suggests that the world’s second-largest economy will continue to see damp demand for black-gold.
Additional concerns can be linked to the fact that Iran is likely to soon be contributing to global oversupply once sanctions have been lifted. ‘The market continues to be fundamentally oversupplied,’ said Andy Lipow, president of Lipow Oil Associates LLC. ‘The United Nations and Iran are well on the way to lifting sanctions that will see the return of Iranian oil to market soon.’
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate dropped to a low of 97.5170 during Tuesday’s European session.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast: Services Data to Provoke Volatility
Given the absence of further economic data pertaining to both the UK and India, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is likely to hold gains for the remainder of Tuesday’s European session. With that being said, any significant movement in oil prices could provoke GBP/INR changes.
Wednesday is likely to see significant GBP/INR volatility in response to services data. India’s Services PMI is predicted to hit 50 which is the mark that separates growth from contraction. December’s British Services PMI is forecast to decline from 55.9 to 55.6.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate reached a high of 98.0230 during Tuesday’s European session.