The Pound has made sizable gains against the Indian Rupee this week due to an extremely positive reaction from investors to the news that the ‘Remain’ campaign is ostensibly in the lead.
The Indian Rupee has been fairly flat against other rivals in comparison, with this rudderless movement stemming from the simple shortage of domestic data being compounded by rising oil prices.
Over the previous week, the Pound climbed from 95.7737 to close the week at a more favourable 97.8110.
Pound Appeal Jumps after ‘Brexit’ Odds Decrease
Sterling’s recent performance against a number of its peers has been fairly impressive on account of the fact that investor enthusiasm for Sterling was piqued in the wake of the latest EU Referendum polls.
The polls in question, coming from the Telegraph and ORB international, both gave the ‘Remain’ side of the debate over 50% of the vote, which saw the Pound soar in the aftermath due to the implication that a stability-linked ‘In’ vote was statistically more probable than an ‘Out’ one.
Other UK news of note has included Bank of England (BoE) Governor Mark Carney defending his claims that a ‘Brexit’ would be a great risk to the UK economy, particularly in the face of his most fierce competitor, Jacob Rees-Mogg, who had previously called for the Governor’s resignation after he supposedly broke the BoE’s historically neutral stance on political matters.
Indian Rupee Flat as Rising Oil Costs Follow Rajan’s Warnings
The Rupee has lost some of its appeal lately on account of Indian data being in extremely short supply for almost the entire week.
Occurrences that have impacted the Rupee have generally been negative, with the most recent upward movements for the price of crude oil on the WTI index and for Brent doing little to inspire confidence in the future value of the Indian currency.
Additionally, noted Reserve Bank of India (RBI) Governor Raghuram Rajan has warned against the nation being overambitious with its growth, stating:
‘Given great uncertainty about outlook and policies of others in these times, a country like India should try to take sensible measures without getting too ambitious, as we have done so far’.
GBP/INR Exchange Rate Forecast
For the rest of the current week, Pound Sterling/Indian Rupee exchange rate movement may occur as a result of Thursday’s UK BBA loans for house purchases, as well as the Q1 GDP results which are due at the same time.
Loans are expected to fall on their previous printing, while quarterly GDP has been predicted to reprint at 0.4% on the quarter and 2.1% on the year.
India’s only notable announcements will be Friday’s foreign reserves stat for mid-May, which are forecast to increase slightly based on the prior result.
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