British Pound to Indian Rupee (GBP/INR) Exchange Rate Suffers from Scottish Separatists
YouGov’s latest poll on Scottish Independence has seen a shocking ascent to 51% in favour of a parting of the ways. The unexpected rise to a pro-nationalist majority has seen sentiment towards the Pound decline dramatically; softening Sterling against all of its major competitors. The Indian Rupee, meanwhile, has enjoyed a surge of momentum after Friday’s US Non-Farm Payrolls produced an unexpected result.
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The Pound Sterling to Indian Rupee exchange rate is currently trending in the region of 97.2040.
Over the course of last week the Pound showed a general decline against the majority of its rivals after a YouGov poll on Scottish Independence showed the unionists lead had depleted rapidly; dropping from 22% to 6% in under a month.
A bullish US Dollar held the Indian Rupee back for the majority of last week, but Friday’s US economic data gave a fresh boost to the Indian currency. The US Non-Farm Payrolls was forecast to increase from the previous figure of 212,000 to 230,000. The actual data, however, showed a massive declination to 142,000. Change in Private Payrolls also disappointed having been forecast to rise to 215,000 from 213,000 but actually plunging to 134,000.
The poor US labour market data has eased the pressure for the Federal Reserve to hike their benchmark interest rate in the near-future, but delaying action could see sentiment towards the US Dollar wane considerably, and has already had the effect of boosting other currencies such as the Indian Rupee. Co-head of currency and rates Ankur Jhaveri confirmed this; writing that the US labour data has had the effect of ‘reviving bets that the Federal Reserve might leave interest rates near zero for longer than anticipated’.
The Pound Sterling to Indian Rupee exchange rate has hit a low today of 97.0260.
Monday has seen the Pound plummet against all of its major peers after the latest YouGov poll has seen the lead change hands from the unionists to the nationalists by 51%. Trader reaction to this news was to be expected as a severed 307-year-old union presents far too many unknowns to risk investment prior to the conclusion of the referendum on 18th September.
Derek Halpenny, the head of global-markets research at Bank of Tokyo-Mitsubishi UFJ Ltd. in London, commented; ‘There seems to be plenty of scope for further Pound declines given the pronounced degree of uncertainty and unknowns related to a break up […] A ‘Yes’ victory is still hardly priced in as this only has become a focus since the middle of last week when we had the first surprise poll. I see little upside for the Pound now through to Sept. 18’.
With an absence of domestic data until Friday the Indian Rupee is likely to experience changes dictated by foreign currency movement and geopolitical developments.