Pound Sterling to Indonesian Rupiah (GBP/IDR) Exchange Rate Forecast to Decline after UK Manufacturing Growth Slows

The Pound Sterling to Indonesian Rupiah (GBP/IDR) exchange rate declined during Wednesday’s European session after British manufacturing output slowed in June. The seasonally-adjusted Manufacturing PMI came in at 51.4 in June, missing the median market forecast of a rise from 51.9 to 52.5. The slowdown was linked to falling exports as the turmoil surrounding the Greek tragedy has stymied European imports. Rob Dobson, Senior Economist at survey compilers Markit said; ‘With manufacturing still in a growth funk, the UK economy will be even more reliant on other sectors, such as services, to deliver solid growth in quarter two. It is also disappointing that for a nation now steeped in rebalancing rhetoric, it seems as if domestic consumer-driven expansions remain the norm.’

The Pound’s depreciation was somewhat eased, however, thanks to positive comments from Bank of England (BoE) Governor Mark Carney in reference to the UK’s financial stability report. Carney stated that, whilst the market as a whole will be affected by the deepening of the Greek crisis, the UK is reasonably well insured against any potential fallout. Also helping the Pound avoid a large declination was news that a British mining company, Syrius, was given the go-ahead to build a potash mine which could create over 1,000 jobs and add $1.6 billion a year to the UK economy.

The Pound Sterling to Indonesian Rupiah (GBP/IDR) exchange rate is currently trending in the region of 20854.8742.

The Rupiah, meanwhile, advanced versus many of its peers despite the fact that the Greek crisis has seen dampened demand for emerging-market currencies. The appreciation can be linked to better-than-expected inflation. June’s Inflation Rate increased from 7.15% to 7.26% on the year, with the month figure up from 0.5% to 0.54%. In addition, Core Inflation held at 5.04% on the year in June despite predictions of a drop to 5.0%. Also, May’s Tourist Arrivals increased exceptionally on the year from 3.24% to 5.47%.

‘The cause of the inflation is basic food commodities, as demand is high during the fasting month and ahead of the Eid al-Fitr,’ Suryamin, the agency chief who like many Indonesians goes by one name, told reporters.
The Pound Sterling to Indonesian Rupiah (GBP/IDR) exchange rate was trending within the range of 20839.9557 – 20968.1852 during Wednesday’s European session.