Impressive Employment Figures Bolster GBP/INR
The Pound to Indian Rupee (GBP/INR) exchange rate jumped during this morning’s trading session as the UK’s latest employment figures came in better-than-expected.
At the time of writing GBP/INR was up by 0.4% and close to striking its best levels since the Brexit referendum.
Pound (GBP) Strengthened by Record High Employment
The Pound recorded solid gains against the Indian Rupee this morning as investors reacted to the UK’s latest employment figures.
According to data published by the Office for National Statistics (ONS), while the UK’s jobless rate held at a 42-year low of 4.3% in November. total employment climbed to a new record high of 32.21m.
The report also shows that employment rose by 102,000 in the three months to November, easily beating forecast that it would have instead have tumbled by 13,000.
On top of this, the accompanying wage figures also came out slightly better than expected, with average earnings excluding bonuses rising by 2.4% against the 2.3% predicted.
Wage growth in the UK has been under particular focus in recent months as it lags behind soaring inflation, so today’s figures were a welcome relief to GBP investors.
Jasper Lawler, head of research at London Capital Group, said;
‘The relentless rise in sterling, which has seen it jump over 3% in the last 10 days is looking durable.’
‘The good news for the economy is that more people are working with rising wages despite any uncertainty associated with leaving the European Union.’
Indian Rupee (INR) Aided by Weakened US Dollar (USD)
While the Indian Rupee is wilting against Sterling, it’s showing a little more resilience against other major currencies, such as the Euro (EUR).
With little political or economic factors to aid the Rupee its resilience this morning has largely been attributed to the continued sell-off of the US Dollar (USD).
The recent weakness of the US Dollar has made emerging markets such as India increasingly attractive to investors, helping the Rupee stem some of its losses against the resurgent Pound.
However with fundamental support for the Rupee still lacking, the currency could easily retreat if the US Dollar finds its feet again.
GBP/INR Exchange Rate Forecast: Drop in UK Retail Activity to Weaken Sterling?
Looking ahead, the GBP/INR exchange rate may stumble again tomorrow following the publication of the Confederation of British Industry’s (CBI) latest retail figures.
Economists forecast that the CBI’s Distributives Trade Index will have slid from 20 to 12 in January as consumers cut back after spending big on Christmas.
Meanwhile, a lull in domestic data will likely see any movement in the Indian Rupee continue to be driven by the strength of the US Dollar, with any further weakness in USD likely to help bolster INR.