GBP/INR Conversion Rate Predicted to Hold Gains despite Weak British Retail Sales
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate edged higher by around 0.3% on Thursday morning.
Despite the fact that British economic data produced mostly disappointing results today, the Pound avoided a significant depreciation versus most of it rivals. This is likely to be the result of improved bets regarding the timing of a Bank of England (BoE) interest rate hike following the Federal Open Market Committee (FOMC) minutes. The FOMC minutes showed that most Federal Reserve policymakers were likely to vote to hike the cash rate in December. This would see improved conditions for the BoE to follow suit.
Today’s domestic data produced poor results, however, which has seen the Pound edge lower versus the single currency. October’s Retail Sales saw growth of 3.0% on the year; missing the median market forecast 3.9% sales growth. On a monthly basis, October’s Retail Sales contracted by -0.9% despite the market consensus of -0.6% contraction. October’s Retail Sales including Auto Fuel also failed to meet with expectations on both an annual and monthly basis. Adding to today’s weak British data docket was CBI Trends Total Orders which failed to meet with expectations of a jump from -18 to -10, with the actual result only reaching -11.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 101.0000.
INR/GBP Exchange Rate Forecast to Hold Losses as 17,000 RBI Employees Strike against Reforms
Although crude oil prices remain historically low, despite US inventories data showing stockpiles were slightly reduced, the Indian Rupee softened versus most of its currency rivals during Thursday’s European session. This is due to some 17,000 employees of the Reserve Bank of India going on strike in opposition to recent reforms and in the hopes of securing better pension deals. The main opposition to the reforms are the result of fears that the central bank will lose its independence.
‘The government by various mechanisms is taking away functions of RBI. They have proposed to form Public Debt Management Agency (PDMA). Monetary policy is RBI’s jurisdiction and the government wants to be part of it, which will cripple RBI’s power,’ United Forum’s convenor Samir Ghosh said.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate dropped to a low of 100.6700 during Thursday’s European session.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast: Sterling to Hold Gains ahead of British Government Borrowing Data
Given that the RBI strike is only set to last for one day, the Rupee should resume regular trade tomorrow. The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is likely to hold gains ahead of Friday’s British government spending data. India’s Foreign Reserves data may also provoke GBP/INR volatility tomorrow.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate climbed to a high of 101.1600 today.