Pound to Rupee Exchange Rate Forecast: GBP/INR Continues Downward Trend Today

August 20, 2014 - Written by David Woodsmith

STORY LINK Pound to Rupee Exchange Rate Forecast: GBP/INR Continues Downward Trend Today

The British Pound to Rupee exchange rate (GBP/INR) witnessed during the mid-week trading session following the upbeat Bank of England (BoE) meeting minutes; however, the Rupee (INR) has reached its highest levels against other majors so far this year in August, as investors place confidence that the Indian government is proving more efficient in controlling the current budget deficit.

The Pound meanwhile has been given encouragement to firm in the currency market after the Monetary Policy Committee were divided at their last meeting over whether to maintain low interest rates in the UK economy. The GBP to INR exchange rate is likely to fluctuate further in the latter half of the week following influential data releases.

The Rupee Reaches Highs in August following Upbeat Investors Sentiment

The Rupee has climbed against the US Dollar (USD) in August as an increased number of foreign investors purchased US Dollars. Forex expert Subramanian Sharma stated: ‘Inflows into the debt market are continuing and that should keep the Rupee bias positive. Overall the sentiment on India remains optimistic.’ Moreover, the government’s attempt to attract overseas investors by effectively managing the budget deficit appears to be working. An expert in the field Vikas Babu commented: ‘The Rupee gained mainly as there were inflows seen into local debt. The government’s efforts to cut the budget deficit are positive for the Rupee.’

Furthermore, India may be able to replace China at the top-spot for cotton production as the world’s largest cotton grower in 2015 after an influx of planting. If India begins to produce more outbound commodity traffic, the Indian economy could feel a positive impact as a whole. The Rupee may see some fluctuation this week on Friday with the publication of Deposit Growth, Foreign Reserves and Bank Loan Growth figures.

Pound Sterling to Euro and Dollar Exchange Rate on Track to Rally

The Pound has gained a backbone today in the currency market after encouragement from the Bank of England that some board members envisage an interest rate hike in the near future with a split vote in today’s minutes. The Pound will need a continuation of positivity by way of data releases with the potential for Thursday’s Retail Sales figures to encourage the current Sterling rally. However, the Pound has been facing the prospect that Scotland may dislocate itself from the UK, and want to take Sterling with it. Wednesday has seen information released that over half of people who undertook the Future of England Survey voted against Scotland leaving the UK and maintaining its use of the Pound—despite some Scottish politicians remaining adamant they would orchestrate a currency union.

Scottish representative for Labour Jackie Baillie stated: ‘It is not surprising that the majority of people in England do not support a currency union. It wouldn’t work for Scotland or the rest of the UK. For us in Scotland it would mean handing over control of our economy to what would then be a foreign country.’

The Pound to Indian Rupee exchange rate can expect to see fluctuations tomorrow following the morning’s release of Retail Sales figures; meanwhile Friday may offer some variation for the Rupee with India’s data publications.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Currency Predictions Daily Currency Updates Poun Forecasts