Currency News

Daily Exchange Rate Forecasts & Currency News

Pound Indian Rupee Exchange Rate Dips after Concerning UK Wage Figures

September 14, 2016 - Written by Tim Boyer

British Pound Exchange Rate News: GBP Losses against the Rupee (INR) Follow Falling Wage Growth



The Pound has fallen by a small amount against the Indian Rupee during trading today, having dropped from an initial high of 89.22 to a new low of 88.19 over the course of trading.

The latest UK data has included a rising number of jobless claims in August, a static July unemployment rate at 4.9% and average earnings that fell in bonus and bonus-less fields.

This last result has been particularly concerning for investors in the Pound, who have had to contend with recent news that UK inflation came in at 0.6% on the year in August.

Pound Sterling to Indian Rupee (GBP/INR) Predictions: Bank of England (BoE) Predicted to Hold Fire on Dramatic Policy Measures Tomorrow



The Pound Sterling to Indian Rupee (GBP/INR) exchange rate may be shifted dramatically tomorrow depending on how much action the BoE takes during its September policy meeting, where among other things, the central bank’s interest rate will be decided.

The rate is forecast to remain unchanged at 0.25%, therefore the focus of investors will instead be on any policy adjustments, as well as the minutes accompanying any such decisions.

Given how much uncertainty has been caused by still-positive inflation and falling wage growth, it seems a distinct possibility that BoE officials will hold their ground for the present month, instead opting to ‘wait and see’ if any further action is needed at the present time.

Advertisement

Indian Rupee (INR) News: China Pledges ‘Friendship’ with India, Forecasts Positive for Current Account Result



The Indian Rupee has been able to advance against its regular peers today, which include the Euro (INR/EUR), US Dollar (INR/USD) and the Pound (INR/GBP).

The day’s Indian economic data has focused on inflation on the year in August, which has risen from 3.55% to 3.74%. Breaking this figure down, fuel inflation has risen from -1% to 1.62% while the cost of food has shifted down from 11.82% to 8.23%.

In other news, Chinese officials have voiced their desire for extending economic ties between the Asian superpower and China, citing joint progress towards the same goal of widespread national development.

For the Indian current account result, due at the end of the month, forecasts have been positive, with expectations focusing on an expected positive surplus figure for the first time in around 9 years.

Indian Economic Forecast: Trade Balance due Tomorrow, Foreign Reserves Figures Out on Friday



So what other data is likely to impact the GBP/INR exchange rate? The next Indian economic data to watch out for will arrive over tomorrow afternoon, when the August balance of trade figures are due to be announced. As is stands, a deficit expansion is predicted from -7.76bn to -7.9bn.

Following on from this, Friday afternoon will bring with it the September foreign reserves results, as well as updates on bank and deposit loan growth at the start of the month.

At the time of writing, the only forecast outcome was for the foreign reserves figure to rise from 367.77bn to 367.8bn.

Like this piece? Please share with your friends and colleagues:

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 Pound Rupee Forecasts Pound Sterling Forecasts

Comments are currrently disabled