Pound Sterling exchange rates rise against increasingly dramatic EU referendum arguments. Where next for the GBP to INR exchange rate?
The British pound (GBP) exchange rates entered a downtrend across the board in response to the latest UK Industrial and Manufacturing Production figures, as the domestic economy showed fresh signs of struggling.
As manufacturing output fell sharply and the industrial sector entered a state of recession the GBP/INR exchange rate consequently slumped.
Sterling made more solid gains against the Indian Rupee on Tuesday, in part due to commodity prices.
The Pound to rupee exchange rate has cemented its status owing to the movements in the cost of crude oil.
While earlier on saw a divide between Brent Crude and the WTI index, the most recent shift has seen the price of both forms increase.
Risk aversion kept the pound to rupee exchange rate on a narrow uptrend, as the appeal of the emerging-market currency remained limited.
Demand for the British pound exchange rates was boosted as the UK’s trade deficit narrowed further than forecast, although sentiment was still hampered by worries over the upcoming EU membership referendum.
While the GBP/INR spot rate is currently trending in a tight range, comments from notable economist Ila Patnaik may give investors pause for thought in the near-term.
Regarding the actions of the current Modi Administration, Patnaik has said that:
‘Certain efforts are now being made, but the last two years should have seen far greater action. The core problems of the economy require a substantial reforms programme which is not…yet…visible’.
The Pound has effectively managed to beat the odds against most peers today, although not the Indian Rupee.
The Pound has been able to make a number of respectable advances under less-than-favourable circumstances, especially given the housing price data from earlier.
In the daily war of the words between EU Referendum campaign sides, both the Prime Minister and his opposition have been slugging it out on the issue of ‘Brexit’.
The PM has implicitly warned that leaving the EU could put the UK and the multi-national union at the risk of wars or security risks, while ‘Out’ campaigners including former London Mayor Boris Johnson have stated that the EU is ‘anti-democratic’ and a ‘force for instability and alienation’.
Below we list some of the key fx rates as reference:
On Thursday the Pound to British Pound exchange rate (GBP/GBP) converts at 1
FX markets see the pound vs pound exchange rate converting at 1.
The live inter-bank GBP-EUR spot rate is quoted as 1.164 today.
The live inter-bank GBP-USD spot rate is quoted as 1.246 today.
Please note: the FX rates above, updated 25th Apr 2024, will have a commission applied by your typical high street bank. Currency brokers specialise in these type of foreign currency transactions and can save you up to 5% on international payments compared to the banks.
UK Trade Balance Stats and Production Results due in Near-Future
The next UK ecostats to watch out for will come in over Tuesday and Wednesday, although Thursday will also carry with it the monthly Bank of England (BoE) interest rate decision.
Tomorrow’s economic announcements will mainly consist of the trade balance figures for March; these are expected to show slight deficit reductions for the visible and total fields.
Wednesday will bring more impactful data, consisting of the industrial and manufacturing results for March. Positive outcomes are forecast for all fields bar the annual manufacturing one, which is expected to show a worsening of the result.
Indian Rupee Strengthens as Oil Prices Continue to Tumble
The appeal of the Rupee has been high against most of its competitors of late, having been supported primarily by the falling price of Brent Crude oil and that on the WTI index.
An interesting avenue of support has opened up for the Rupee recently, coming from Yaga Venugopal Reddy, a former Governor of the Reserve Bank of India (RBI).
Speaking earlier, Reddy said with regard to global economic slowdown that:
‘It has affected the Indian economy, both positively and negatively. However, the net effect has been positive’.
Only Major Indian Ecostats This Week due to Come at the End
Although India is not expected to be releasing much economic data this week, the planned announcements are nonetheless expected to be ‘high-impact’.
Thursday will bring with it the positively-predicted April inflation rate and March annual manufacturing production results, as well as the negatively-forecast annual industrial production outcome.
Friday’s notable economic announcement will come in the afternoon as the April trade balance. At the time of writing, an expansion of the deficit was expected from -5.07bn to -6.5bn.
Side-tracked Boris Johnson Drags Ukraine Situation into Wider EU Debate
Returning to the earlier comments made by the now ex-London Mayor Boris Johnson, the situation took an irregular turn when Johnson attempted to criticise the EU at large for its hubris by mentioning the ongoing conflicts on the eastern periphery.
As part of his speech, Johnson said:
‘If you want an example of EU foreign policymaking on the hoof and the EU’s pretensions to running a defence policy that have caused real trouble, then look at what has happened in Ukraine’.
In a sharp response to the statement, former Prime Minister of Sweden Carl Bildt called Johnson an ‘apologist for Putin’.