The GBP to INR exchange rate currently shows a bearish bias.
Key drivers include the interest rate divergence, as the Bank of England is expected to cut rates to 3.25% amid slowing inflation and growth, while the Reserve Bank of India maintains a cautious approach. Additionally, UK fiscal policy concerns could increase downward pressure on the pound. On the other hand, India's inflation remains subdued, coupled with robust economic growth, supporting the rupee's stability.
Expect the GBP to INR trading range to remain within a mild fluctuation above recent 14-day lows, as the rate stabilized around 120.8, which is notably above its three-month average.
Upside risks for the pound could arise from potential trade deals that boost export activity, while downside risks may stem from further UK fiscal issues or rate cuts that weaken the pound's appeal.