Money Transfer.co.uk
Compare money transfers, currency exchange and international transfer
Mon 30 Dec 2024 17:17GMT
Compare Money Transfers. Safe. Fast. Free.
A money transfer through a foreign exchange broker is the smart move. With excellent exchange rates and fee-free transfers, you could save time and money.
I need to send money...
GBP/INR Exchange Rate News: Rupee Falls amid RBI Interest Rate Bets
Published: 9 Dec at 4 PM Tags: Pound Sterling, Dollar Exchange Rate, Rupee Exchange Rate, UK, Economy, Inflation,
The Pound advanced against the Rupee on Tuesday, climbing by over 0.3% over the course of the local session. Although Sterling came under pressure as a result of below-forecast UK industrial production and manufacturing production reports, the Rupee was broadly weaker as India’s current account deficit was shown to have widened to the most for a year. In the third quarter the nation’s deficit widened from 7.8 billion US Dollars in the second quarter to 10.1 billion Dollars, taking the shortfall to around 2.1% of GDP.
The wider deficit was largely due to leaping gold imports and slowing export levels. As stated by economist Anubhuti Sahay; ‘Gold imports are likely to increase but they are not as attractive as they used to be in early 2013 as an asset class, so that should limit the pick-up in demand. Oil is a much bigger proportion in the total imports and lower prices should benefit.’ The Rupee was also trending lower against the US Dollar.
Further Rupee losses were accrued as a result of pressure on the Reserve Bank of India (RBI) to adjust its interest rate policy. The Pound was also supported by a report showing that the UK economy expanded by 0.7% in November, unchanged from the previous month. There had been concerns that the pace of growth would slow. Pound to Rupee movement could occur tomorrow following the release of the UK’s trade balance data. Further volatility can be expected on Thursday thanks to the UK’s RICS House Price Balance stats and a speech to be given by the Bank of England’s Ian McCafferty.
Friday could also prove to be influential for Rupee as India publishes deposit growth and foreign reserves figures, bank loan growth data, industrial/manufacturing production stats and the nation’s inflation rate report.
The UK’s Construction Output report will also be of interest before the weekend.
The wider deficit was largely due to leaping gold imports and slowing export levels. As stated by economist Anubhuti Sahay; ‘Gold imports are likely to increase but they are not as attractive as they used to be in early 2013 as an asset class, so that should limit the pick-up in demand. Oil is a much bigger proportion in the total imports and lower prices should benefit.’ The Rupee was also trending lower against the US Dollar.
Further Rupee losses were accrued as a result of pressure on the Reserve Bank of India (RBI) to adjust its interest rate policy. The Pound was also supported by a report showing that the UK economy expanded by 0.7% in November, unchanged from the previous month. There had been concerns that the pace of growth would slow. Pound to Rupee movement could occur tomorrow following the release of the UK’s trade balance data. Further volatility can be expected on Thursday thanks to the UK’s RICS House Price Balance stats and a speech to be given by the Bank of England’s Ian McCafferty.
Friday could also prove to be influential for Rupee as India publishes deposit growth and foreign reserves figures, bank loan growth data, industrial/manufacturing production stats and the nation’s inflation rate report.
The UK’s Construction Output report will also be of interest before the weekend.
Advertisement
Source: moneytransfer.co.uk