Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Edges Lower Today Despite UK Sales Report

June 17, 2015 - Written by Admin

STORY LINK Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Edges Lower Today Despite UK Sales Report

FOMC Supports Rupee, GBP to INR Exchange Rate Static

The appeal of emerging-market assets like the Indian Rupee increased on Thursday as the Federal Open Market Committee's (FOMC) latest policy statement indicated that interest rates may not be revised until December due to lacklustre domestic wage growth. As a result, the Pound Sterling to Indian Rupee (GBP/INR) exchange rate remained trending around the day's opening levels in spite of a surprising increase in UK retail sales.

The GBP/INR exchange rate was trending in the region of 101.2900

Earlier...

Pound Sterling to Indian Rupee (GBP/INR) Exchange Rate Rises to Ten-Month High as UK Data Beats Forecasts

The Pound Sterling to Indian Rupee (GBP/INR) exchange rate advanced to its best level in ten-months on Wednesday as positive data buoyed the UK currency and jitters over the evenings Federal Reserve policy statement weighed upon riskier emerging market and commodity based assets.

The Pound Sterling to Indian Rupee (GBP/INR) exchange rate weakened to a session high of 101.0400

Worries over Greece and the Federal Reserve policy review sent the Indian Rupee sliding to its weakest level in nearly two-years against the US Dollar. Concerns are growing that no deal will be reached between Athens and its creditors, a situation that could lead to Greece leaving the Eurozone and turmoil in the markets. Over the past four sessions the Indian Rupee has fallen more than 0.5% and has lost 4% of its value over the past four months.

The main driver for the Indian Rupees weakness, however, is the FOMC monetary policy meeting. Economists are expecting the meeting to deliver more clarity as to when the Fed will choose to raise interest rates. A rate hike would be the first seen in a decade.

FX News Now: Indian Rupee to US Dollar (INR/USD) Exchange Rate Losses restrained by Monsoon Forecast

Further losses against the US Dollar were restrained as a report showed that seasonal monsoon rainfall has so far been 12% higher than the norm. The pickup in rainfall eased concerns that farm output would be hit and weakened expectations that inflation would rise due to a rise in food prices. The report issued by the Indian weather bureau also showed that nearly 80% of the country has received normal or excess rain volume since June 1.

‘The monsoons may not be as much of a spoiler as people had earlier expected,’ said Anand Bagri, senior vice president and head of domestic treasury at RBL Bank Ltd.

Pound Sterling (GBP) Exchange Rate Jumps after Wage Growth Data Release, Further Currency Movement Predicted

The Pound made solid gains against the majority of its most traded peers following the release of data which showed that UK wages increased by a bigger-than-forecast rate in April. Total pay grew at its fastest rate in nearly four years, increasing speculation that the Bank of England (BoE) may consider an earlier interest rate rise.
The session also saw the release of the minutes from the BoE’s June policy meeting. The monetary policy committee was shown to have voted unanimously to keep interest rates on hold at 0.5%.

More gains for the Pound are possible on Thursday if UK retail sales data comes in strongly.

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TAGS: Currency Predictions Daily Currency Updates Indi Forecasts