Exchange Rate Forecasts for Pound Sterling, Euro, Rupee and Danish Krone

February 6, 2015 - Written by John Cameron

STORY LINK Exchange Rate Forecasts for Pound Sterling, Euro, Rupee and Danish Krone

Latest Forex Forecasts for the Pound to Euro, Rupee and Danish Krone Exchange Rates

Yesterday’s session brought the announcement of another shock interest rate cut from Danmarks Nationalbank.

The decision to trim its key lending rate to -0.75% from a previous -0.50% represented the fourth cut in the past three weeks by Denmark’s central bank.

The move was designed by the Scandinavian nation’s policymakers to maintain the EUR DKK exchange rate at close to the 7.46038 level which the Danmarks Nationalbank targets.

Let's bring you the latest relevant forex rates today:

The Pound to Australian Dollar exchange rate is -0.42 pct lower with a conversion rate of 1 GBP equals 1.95618 AUD.
The Pound to Euro exchange rate converts +0.34 per cent higher at 1 GBP is 1.34024 EUR.
The Pound to Japanese Yen exchange rate converts -0.08 per cent lower at 1 GBP is 179.94767 JPY.
The Pound to New Zealand Dollar exchange rate today is converting +0.02 per cent higher at 2.06943 GBP/NZD.
The Pound to US Dollar exchange rate today is converting +0.1 per cent higher at 1.53370 GBP/USD.

Euro to Danish Krone Exchange Rate Gains

The news of the cut, which was released during the middle part of the European morning session, initially saw the Danish Krone (currency:DKK) weaken against the euro, sending the EUR DKK exchange rate up to an intraday high of 7.4499 before the pair pulled back to 7.44394 just after the New York opening bell.

The Danmarks Nationalbank’s separate actions of the past three weeks, combined with the Swiss National Bank’s apparent inability to defend the ‘minimum floor’ on EUR CHF which brought a complete abandonment of the policy last month, has led commentators to forecast that Denmark’s policymakers may be about to ditch the loose peg for its local currency against the euro.

However, analysts suggest that, with Denmark’s central bank’s balance sheet totalling only 25-30% of the nation’s total annual Gross Domestic Product, the policy is sustainable into the long term. In comparison, the Swiss National Bank’s balance sheet at the time it abandoned its minimum floor against the single currency, totalled some 75% of Switzerland’s GDP.

Elsewhere, the Reserve Bank of India’s decision to maintain its key interest rate at 7.75% earlier in the week was accompanied by a stern warning from its Governor Raghuram Rajan.

The subcontinental central banker counseled that the near-term penchant for easier monetary policy from the world’s reserve banks was threatening to destabilize smaller economies.

Investors had, until Rajan spoke, been pricing-in a fair chance that the Reserve Bank of India would be introducing its own Quantitative Easing scheme later this year.

His complaint that the current round of competitive devaluation might hurt India’s economy was taken as a sign that he is indeed considering a bout of QE for India in an effort not to be left behind.

Pound to Rupee Exchange Rate Forecast

The Pound to Rupee (GBP INR) exchange rate increased from the mid-92.0000s on Tuesday all the way up to an intraday peak of 94.5200 during yesterday’s trading session.

Analysts forecast that there could be more upside to come for GBP INR.

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TAGS: Currency Predictions Euro Forecasts Euro Pound Forecasts Indian Rup Forecasts