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Pound Rupee Exchange Rate (GBP/INR) Forecast To Spiral After ADB Growth Downgrade

October 3, 2013 - Written by John Cameron

The Australian, New Zealand and Canadian Dollars remained under pressure yesterday following a downbeat assessment of the Asian economy by the Asian Development Bank (ADB). The Indian Rupee also lost ground on the day following the ADB’s warning on the detrimental effect which a cut to QE from the Fed would have on Asia’s economy.

The Pound Indian Rupee exchange rate (GBP/INR) is currently trading up by 0.15% at 101.2900 GBP/INR. The Indian Rupee Pound exchange rate is currently trading at 0.0099 INR/GBP.

Yesterday’s session brought bad news for the Commodity Dollars as well as for the Indian Rupee which has taken a hammering in the global currency markets during recent weeks. The announcement from the Asian Development Bank that it is cutting is outlook for up and coming economies in the region which it covers was an unwelcome development for the Australian, New Zealand and Canadian Dollars due to their heavy dependence on continuing strong levels of demand from Asia’s consumer-driven markets.

The ADB laid blame for the predicted cooling of economic growth in Asia firmly at the door of India and China, stating that as these nations’ economies ‘re-balance’ and their activity levels drop off the whole of South Eastern and Subcontinental Asia feels the effect. An additional factor behind the ADB’s downbeat missive was its prediction that the US Federal Reserve will be trimming its Quantitative Easing programme sooner rather than later. The news saw the Pound Indian Rupee exchange rate climb by 0.39% at one point yesterday and further movement higher could be to come if the ADB is to be believed.

Today’s session may once again prove to be market-moving for GBP AUD, GBP NZD, GBP CAD & GBP INR, with this morning’s UK PMI survey of Britain’s services sector providing the first risk event of note for these pairs. Analysts are expecting the data to show that activity in the UK’s combined tertiary sector remained static at 60.5 last month. Anything above this print is forecast to provide further upside for the Pound.

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