Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast to Trend within a Narrow Range ahead of FOMC Rate Decision
GBP/INR Exchange Rate Predicted to Hold Steady after UK Retail Sales Growth Slowed in August
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate was trending within a tight range during Thursday’s European session.
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British economic data produced disappointing results on Thursday, which caused the Pound to edge lower versus many of its currency rivals. The depreciation has been somewhat slowed, however, thanks to trader uncertainty regarding the forthcoming Federal Reserve interest rate decision. With opinion divided as to how the Federal Open Market Committee (FOMC) will approach monetary policy, the currency market has seen subdued volatility this far on Thursday.
UK Retail Sales growth failed to meet with expectations in August. On the year, Retail Sales came in at 3.5%, which missed the median market estimate of 3.8% sales growth. Retail Sales including Auto Fuel missed the market consensus of a 3.8% increase in August with the actual result only reaching 3.7%. The slower-than-expected sales growth has been linked to falling food prices. However, the depreciation was somewhat slowed thanks to improving clothes sales.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate is currently trending in the region of 103.1800.
INR/GBP Conversion Rate Estimated to Trend within a Narrow Range despite Weak Crude Futures
With the FOMC rate decision dominating trader focus, the currency market has seen subdued volatility. In particular, traders are showing reluctance to invest heavily in emerging-market assets given that opinion is divided as to whether policymakers will opt to hike or hold. Should the Fed choose to increase the benchmark interest rate the Indian Rupee is likely to soften considerably.
The Rupee could see increased support once the Fed decision has been fully digested, however, after crude futures took a knock from a dovish Goldman Sachs report. Goldman analysts stated that the current crude glut is greater than they had originally anticipated. Although US stockpiles have steadily declined, the extent of oversupply could see oil prices remain low for as much as 15 years. This would be supportive for the Indian economy as one of the world’s foremost crude importers.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate dropped to a low of 102.4100 during Thursday’s European session.
Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Forecast: FOMC Rate Decision to Cause Fluctuations
Given the extent of the importance of the FOMC rate decision and its influence on the currency market as a whole, the Pound Sterling to Indian Rupee is likely to fluctuate considerably upon the announcement of the decision. The accompanying press conference will also have a significant impact on market volatility.
Looking ahead to Friday, a complete absence of British data should see the Pound trade in response to changes in market conditions and risk sentiment. India’s economic data has the potential to influence Rupee movement. However, Deposit Growth, Foreign Reserves and Bank Loan Growth may not have a huge impact depending on crude prices and the FOMC rate decision.
The Pound Sterling to Indian Rupee (GBP/INR) exchange rate advanced to a high of 103.1900 during Thursday’s European session.
