The Pound dropped by around -0.5% against the Indian Rupee as GBP suffered in the face of developments in the House of Commons.
The Rupee, meanwhile, has been supported by an optimism-inducing growth forecast from PwC and the news that oil prices have slipped.
Last week saw the Pound Rupee exchange rate deteriorate overall, with an initial rate of 85.10 on Monday give way to a closing low of 83.97 on Friday.
Pound Sterling Sees Heavy Losses on Brexit Debate as Article 50 Bill Moves through Parliament
The Pound has been soft against the Indian Rupee during trading today, in part due to alarming developments in the House of Commons.
These have included MPs voting down a Labour amendment to require regular Brexit updates from the PM, as well as the Government enabling a final Parliament vote on the Brexit deal.
Notably, Brexit Minister David Jones has alarmingly stated that if a no vote is in the majority at the final moment, then the UK will leave the EU anyway under presumably much worse conditions than had it negotiated with EU officials further.
Other damage to the Pound has come from an Institute for Fiscal Studies (IFS) forecast, which predicts that even after harsh austerity measures from now onwards, the UK will still hold a substantial budget deficit by the 2020’s.
Indian Rupee Rally Seen on US-Beating Growth Forecasts and Lower Oil Costs
The Indian Rupee’s strong advance against the Pound has come in the wake of a PricewaterhouseCoopers forecast for Indian economic growth.
Notably, the company has predicted that by 2040, India will overtake the US economy in terms of size, signifying a consistent expansion of Indian economic activity.
The other factor aiding the Rupee has been the cost of crude oil which has dropped off since February 3
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to trend around $52.14 per barrel.
GBP/INR Exchange Rate Forecast
For the remainder of the week, Pound Sterling/Indian Rupee exchange rate movement may occur as a result of UK trade and production stats on Friday, as well as a National Institute of Economic and Social Research (NIESR) GDP estimate due on the same day.
For both December industrial and manufacturing production figures, an annual rise and monthly drop is expected.
Aside from these end-of-week releases, the Pound could also be shifted if a third reading of the Article 50 bill arrives. This would require a vote and as approval has been forecast, the Pound could fall on this sign of a step closer to Brexit.
From India, the next economic data to watch out for will be Wednesday morning’s Reserve Bank of India (RBI) interest rate decision, which has a rate cut from 6.25% to 6% forecast.
On Friday, Indian industrial and manufacturing figures for December are also due.