Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Gain as Indian Inflation Drops Significantly
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate edged higher by around 0.14% on Monday afternoon.
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After British data showed house prices cooled a little in March the Pound softened versus many of its major pers. The declination has been somewhat slowed, however, amid speculation that the extensive quantitative easing program in the Eurozone will be beneficial to the British economy.
The Indian Rupee, meanwhile, dived versus the majority of its most traded currency rivals. The declination is as a result of negative inflation, with amplified speculation that the Reserve Bank of India (RBI) will have to cut rates to combat deflation. The downtrend was slowed significantly, however, thanks to crude prices falling sharply.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 93.1020.
Pound Sterling (GBP) Exchange Rate Softens on Political Uncertainty
With the general election fast approaching the outlook for the Pound is cloudy amid political uncertainties. This, in addition to cooling house prices, caused the Pound to soften versus many of its most traded currency peers.
On the year, Rightmove House Prices showed growth of 5.4% in March, which was lower than the previous growth of 6.6%. March’s House Prices showed 1.0% growth on the month, but February’s prices increased by 2.1%. Although the rate of sales growth cooled in March, the data still indicates sufficient demand for housing in the UK.
‘This month fits the consistent pattern of ebbs and flows in many different localities within the overall London market, with prices still going up in some better-value boroughs and still going down in others that have overshot,’ Rightmove director Miles Shipside said.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate has fallen to a low of 92.3150 today.
Indian Rupee (INR) Exchange Rate Softens on RBI Rate Cut Speculation
Indian economic data printed particularly disappointingly on Monday, which saw the Rupee decline versus most of its major competitors. The Wholesale Price Index declined by -2.06% in February; extending deflation from January’s score of -0.39%. The negative inflation has amplified speculation that the RBI will have to cut rates.
‘The situation demands urgent action to boost industrial and consumer demand and lowering of interest rates and easy credit availability should be the top priorities of government and RBI,’ Assocham President Rana Kapoor said in a statement. ‘Re-energising of the manufacturing sector is imperative and the overall focus must now shift to reviving GDP expansion, industrial growth, boosting consumer and investor sentiments,’ Kapoor added.
‘While the subdued global commodity prices have aided the softening of inflation trend in India, weak market demand is also an important aspect. RBI should take further measures to strengthen the demand impulses in the economy and continue with its rate cutting cycle in the coming month,’ said FICCI Secretary General A Didar Singh.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Fluctuate
Given that oil prices have a significant impact on the Rupee, and with political uncertainties dividing opinion as to the risk attached to Sterling investment, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate is likely to fluctuate over the coming week.
A complete absence of Indian economic data until Friday of next week may see Rupee volatility cool, although if the RBI chooses to act quickly to combat deflation the Rupee is likely to undergo marked changes. In terms of British data, Wednesday will be important with several publications due.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate climbed to a high of 95.2750 today.