GBP/INR Exchange Rate Forecast to Edge Higher after India Agrees to Purchase 36 Rafale Fighter Jets from France
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Edge Higher despite Mixed UK CBI Data
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate ticked higher by around 0.2% on Monday afternoon.
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With the exception of some emerging-market assets and most commodity-correlated assets, the Pound softened versus its major peers today. The depreciation can be linked to mixed results from Confederation of British Industry (CBI) data. Whilst January’s CBI Business Optimism improved from -12 to -4, and January’s CBI trends Selling Prices gained from -2 to 1, January’s CBI Trends Total Orders declined beyond expectations from -7 to -15.
Rain Newton-Smith, the CBI’s director of economics, said: ‘Manufacturers have seen a flat start to 2016. But while we have seen real problems in some industries in the last few months, there are signs that orders and production are stabilising overall. Uncertainty around the prospects for global growth, uncompetitive energy costs and the strength of the Pound have all played their part in UK manufacturers finding conditions tough when trying to sell overseas.’
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 96.5380.
Indian Rupee to Pound Sterling (INR/GBP) Conversion Rate Predicted to Edge Lower despite Falling Crude Prices
After Saudi Arabia announced that oil production will remain at current levels irrespective of global oversupply, the price of crude declined considerably. Adding to crude headwinds was a report that showed Chinese demand for diesel cooled for the fourth consecutive month. India is one of the world’s foremost crude oil importers so falling prices usually coincides with a Rupee appreciation. However, news today that India’s Prime Minister Narendra Modi has struck a deal with France to purchase 36 Rafale fighter jects has weighed on Rupee gains. The defence deal being hashed out is one of the world’s largest and is likely to cost India a great deal.
‘We have completed an inter-governmental agreement for the purchase of 36 Rafales, with the exception of the financial aspects,’ Mr Modi said after meeting Mr Hollande. India is intent on purchasing 126 jets in total for an estimated cost of £8.2 billion.
‘France and India are two great democracies… therefore we are prime targets for terrorists who cannot abide liberty, democracy or culture. We must therefore co-operate more on security,’ Mr Hollande said on Sunday.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate dropped to a low of 96.2730 during Monday’s European session.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast: UK Q4 GDP in Focus
Given the complete absence of Indian economic data until Friday, Rupee trade this week will be subject to market sentiment, oil prices and geopolitical developments. The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is most likely to see volatility this week in response to Thursday’s UK fourth-quarter Gross Domestic Product data. Friday’s Indian Foreign Reserves and Government Budget Value data will be closely watched by those trading with the Rupee.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate climbed to a high of 96.8020 during Monday’s European session.