Rupee Rate Today: GBP INR Exchange Rate Softens as Sterling Suffers Poor UK Sales Data

October 22, 2014 - Written by Minesh Chaudhari

STORY LINK Rupee Rate Today: GBP INR Exchange Rate Softens as Sterling Suffers Poor UK Sales Data

The Pound to Rupee (GBP/INR) exchange rate continued to soften as weak UK retail sales data further compounded Wednesday's minutes of the Bank of England’s latest policy meeting which were more dovish than forecast.

The INR meanwhile continued to be buoyed by hopes for more economic reforms from the Narendra Modi government.

The Rupee also advanced against the US Dollar (USD) and several other peers as economists become more optimistic over the outlook for the Indian economy.

A quick look at the latest conversion rates today:

The Rupee to Pound exchange rate is 0.0102 GBP.
The Rupee to Euro rate today is 0.0129 EUR.
The Rupee to US Dollar exchange rate is converting at 0.0163 USD.

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Rupee rate Today: INR Gets Boost From Positive Sentiment

The Modi governments plans to deregulate diesel prices and plans to open up the coal industry to private players has increased expectations for a larger reform programme.

Improved sentiment towards the global economy also aided the Rupee.

Moody’s Analytics credit rating agency Vice President Atsi Sheth commented: ‘Implementing reform at a time of low international oil prices reduces the potential for inflationary pressures from a jump in domestic fuel prices. Moreover, petroleum products have a small weight in India’s consumer price basket and we therefore expect energy product price liberalisation to have a benign impact on CPI [Consumer Price Index] inflation.’

Sterling was weakened after the latest Bank of England Minutes showed that policy makers voted in favour of leaving interest rates unchanged at the record low level of 0.5%.

Policy makers also voted unanimously in favour of leaving the banks monthly bond-buying programme unchanged.

The currency softened as the minutes revealed that policy makers are growing concerned over the health of the global economy, in particular the weakness in the Eurozone.

‘There’s no sign of hawkishness picking up yet. That’s going to keep rate expectations pushed back for the time being and that is going to keep Sterling under pressure against the US Dollar,’ said Ian Standard, head of European foreign exchange strategy at Morgan Stanley.

In another sign that the Bank of England was in no hurry to raise rates, most of the MPC's members saw "few signs" of inflation pressures building, even taking into account how the stronger pound was lowering import prices, something that could prove temporary.

Pound to Rupee rate Forecast:

The Pound could regain some ground on Thursday if the latest Retail Sales data comes in positively but the focus for the currency will be Friday’s Gross Domestic Product (GDP) economic data.

The Indian financial markets will be closed on Thursday and Friday for local holidays.

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