British Pound to Indian Rupee (GBP/INR) Exchange Rate Holding on Weekly Low despite Faltering Indian Data
Friday’s British and Indian data could have printed better; resulting in the Pound to Indian Rupee exchange rate holding on a weekly low. Negative sentiment towards Sterling after Bank of England policymakers made dovish remarks has held Sterling back, whilst a slightly softer US Dollar has boosted emerging market currencies such as the Rupee.
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The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 98.7140.
On Thursday a better-than-expected construction ecostat wasn’t enough to increase demand for the Pound after Bank of England policymakers Ben Broadbent and Kristin Forbes made dovish remarks regarding monetary policy. Both Broadbent and Forbes warned that the British economy is far from ready for a benchmark interest rate hike and the Pound plummeted against the majority of its most traded currency peers as a result.
After a sustained bullish run the US Dollar softened a little on Thursday. Anxieties that over-purchase in anticipation of a 2015 rate hike caused traders to pull away from the US Dollar given that recent economic data doesn’t necessarily warrant the chart-topping position. Emerging-market currencies, such as the Indian Rupee, benefitted from a weaker US Dollar.
The Pound Sterling to Indian Rupee exchange rate has hit a low today of 98.7080.
Friday’s British economic data printed below expectations, compounding the Sterling downtrend which has declined across the board. The Composite PMI was forecast to drop from 59.3 to 58.2 but the actual result fell to 57.4. Similarly the Services PMI was forecast to decline from 60.5 to 59, but the actual result showed further reduction to 58.7. Chris Williamson, Chief Economist at Markit stated; ‘September’s PMI surveys suggest that the UK most likely enjoyed another spell of above-trend economic growth in the third quarter, but the recovery appears to be losing its legs […] ‘The slowdown is in line with Bank of England projections and, alongside record low pay growth, adds to the case for interest rates to remain on hold until next year, and at least until there are clear signs of wages and household incomes rising in real terms’.
Indian domestic data on Friday also proved to be less-than-idea, although this has had little effect on the GBP/INR exchange rate. Yearly Deposit Growth cooled from 13.8% to 13.4%. Foreign Reserves declined from $315.6 billion to $314.2 billion and Bank Loan Growth stayed in line with the previous figure of 9.7%.
Forecast for the Pound to Indian Rupee Exchange Rate
Friday’s US economic data has printed particularly positively which is likely to see the US Dollar claw back the losses from over-purchase. Change in Non-farm Payrolls eclipsed the median market forecast of a rise from 180,000 to 215, 000, with the actual data reaching 248, 000. Also the Unemployment Rate showed a positive declination from 6.1% to 5.9%.
This, therefore, is likely to see the Pound to Indian Rupee exchange rate firm up a little over the course of the weekend as emerging market currencies are bullied by the US Dollar.