UK Pound (GBP) Exchange Rate Forecast to Decline against the Indian Rupee (INR) on BoE Rate Hike Delays
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate softened by around -0.4% on Thursday afternoon.
As traders attempt to readjust the market so currency values are more appropriate, the Pound fluctuated versus its major peers. A lean toward depreciation can be linked to speculation that the Bank of England (BoE) Monetary Policy Committee (MPC) will delay a rate hike due to external factors. The turmoil in China has caused many traders to push back bets of a first-quarter cash rate increase in 2016 to the third-quarter.
British economic data produced mixed results on Thursday but the reports had minimal impact on Sterling movement. Nationwide House Prices increased by 3.2% on the year in August; eclipsing the market projection of a 3.1% house price rise. However, on a monthly basis, Nationwide House Prices only rose by 0.3%; slightly under Augusts’ median market forecast 0.4% price increase. With UK house prices rising, many analysts fear that construction needs to pick up significantly in order to avoid alienating first-time buyers.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 101.8000.
Indian Rupee (INR) Exchange Rate Forecast to Advance against the British Asset (GBP) as Markets Readjust following ‘Black Monday’ Chaos
Emerging market assets, such as the Indian Rupee, have generally strengthened over the past few days as the markets readjust from Monday’s shock equity market crash in China. Asian emerging assets were particularly impacted by China’s economic woes. The Rupee has been gradually advancing versus its major peers irrespective of oil prices or data.
The Indian Rupee has also found support as fears of a global economic slowdown caused traders to delay bets as to the timing of a Federal Reserve rate hike. Whilst oil prices have risen during Thursday’s European session, usually causing Rupee declination, crude prices remain low at around $40 a barrel. This makes India’s imports cheaper and should result in a healthy trade surplus.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate dropped to a low of 101.6900 today.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Hold Losses ahead of UK Consumer Confidence
With a complete absence of further data publications pertaining to either the UK or India to provoke changes, and with markets still readjusting from Monday’s turmoil, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is likely to hold losses for the remainder of Thursday’s European session. With that being said, if crude oil prices spike significantly the Rupee is likely to decline.
Friday will see heightened GBP/INR volatility with UK Consumer Confidence and second-quarter Gross Domestic Product due for publication. In terms of Indian data, Foreign Reserves may not be hugely impactful. Rupee trade will most likely be dictated by oil prices and market sentiment.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate climbed to a high of 102.5100 during Thursday’s European session.
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