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Pound Sterling to Rupee Exchange Rate Today: GBP/INR Forecasted to Strengthen

November 19, 2014 - Written by Frank Davies

Currency News UK brings you the latest GBP/INR foreign exchange rate outlook and forecast for the pound sterling (currency:GBP) and rupee (currency:INR) along with conversions for today.



latest rupee exchange rate forecastsThe Pound Sterling to Rupee exchange rate strengthened by over 0.60% as speculation increased that the supply on US Dollar inflows into India will fall following the release of data, which showed that exports declined for the first time in seven months.

Data released earlier in the week had showed that Indian exports fell by 5% in October compared to last year. Also influencing upon the Rupees strength was the strengthening US Dollar and increasing Dollar demand from Indian oil companies.

‘Exports remain a worry for India, plus the Rupee can’t completely decouple from what’s happening in the international markets. The overall trend for the Rupee for a month or so is going to be that of slow depreciation,’ said Anindya Banerjee, a Mumbai based currency analyst at Kotak Securities Ltd.

The Pound to Euro conversion rate is +0.23 pct higher at 1.24992 GBP/EUR.
The Pound to US Dollar conversion rate is +0.3 pct higher at 1.56744 GBP/USD.
The Pound to Rupee exchange rate today is 97.047 GBP/INR.
The US Dollar to Rupee exchange rate converts at 1 USD is 61.20500 INR.

Rupee Exchange Rate Weighed by Yen Fears



Concerns over the Japanese economy also weighed upon the Indian currency as a sharp slide in the Yen raised fears that demand for products from Asia’s emerging markets could decline.
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Japanese Prime Minister Shinzo Abe announced that snap elections would be held in December after Japan slid back into recession in the third quarter of 2014. The Japanese news was also weighing upon demand for riskier assets and saw investors favour safer options such as the Pound.

Sterling meanwhile was strengthened after the minutes of the Bank of England’s November policy meeting showed that some of the bank’s policy makers were growing concerned that inflationary pressures could build, easing pressure on the bank to leave interest lower. The minutes were also more hawkish than forecast.

‘Investors are reducing short-sterling positions on the BoE minutes. There were an expectation of greater dovishness and a possible return of an 8-1 split amongst policy makers,’ said Neil Jones, head of hedge-fund sales at Mizuho Bank.

Rupee to Pound Exchange Rate Forecast



The Indian Rupee could fall further against the Pound and fall beyond an 8-1/2 month low against the US Dollar if the Federal Reserve’s latest policy meeting minutes shows that Fed policy makers are getting closer to raising interest rates.

Any indication that a US rate hike is getting closer will likely negatively affect emerging market currencies including the Indian Rupee. Despite that, some economists say that the Rupee is a good position to protect itself from too sharp a fall.

‘Hopes of rate cuts and positive reforms from the Indian government should limit any major fall in the Rupee,’ said Anish Vyas, a currency strategist at Angel Securities.

The Pound could make further gains if Thursday’s UK Retail Sales data comes in strongly.

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