Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Gains after CPI
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Prior to this the Pound had been trending in a weaker position against its emerging market peer due to the disappointing Like-for-Like sales report from the British Retail Consortium.
The Pound broadly weakened as sales were shown to have declined in July on a year-on-year basis. The -0.3% decline defied economists’ expectations for an increase of 0.9% and raised concerns regarding the resilience of the UK’s retail sales sector.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate hit a low of 102.3900.
However, Sterling recouped losses against the Rupee as investors responded to mixed economic reports for India.
The nation’s Consumer Price Index was up 7.96% in July from the same period of a year earlier. This followed a positively revised figure of 7.46% in June. Economists had anticipated a reading of 7.4%.
This result ups the pressure on the Reserve Bank of India to hold interest rates at a higher level in spite of disappointing economic fundamentals.
In the view of economist Shubhada Rao; ‘There are uncertainties along the way including geopolitical risks and the monsoon. There are challenges to the central bank target of 6% which will require improved supply side measures and a dominant role played by fiscal policy’.
Separate Indian data showed a more moderate increase in industrial production in the nation than economists had hoped for. Industrial production was up 3.4% on the year in June, considerably less than the estimated annual increase of 4.7%.
Manufacturing Production, meanwhile, climbed by 1.8% in June, year-on-year, rather than showing the 4% increase expected.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast
The Pound Sterling to Indian Rupee exchange rate is more than likely to fluctuate tomorrow in response to the UK’s employment figures and Bank of England (BoE) Inflation Report.
A surprisingly upbeat average weekly earnings report could trigger widespread Sterling gains and inspire some upward momentum in the Pound Sterling to Indian Rupee exchange rate.
As the week progresses further volatility in the pairing could be caused by India’s trade balance figures, Wholesale Price Inflation data and foreign reserves figures.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trading against the Rupee in the region of 102.5110
The US Dollar is currently trading against the Rupee in the region of 61.0800