The GBP to INR exchange rate has shown some volatility recently amid a challenging economic landscape for both currencies. The pound has experienced fluctuations in response to the UK autumn budget, which resulted in a slight recovery due to upwardly revised growth forecasts for 2025. However, investor sentiment remains cautious, with concerns emerging about potential tax increases and interest rate cuts, leading to speculation that the Bank of England (BoE) may lower rates soon. These factors have contributed to the pound trading at multi-month lows against the US dollar and weakening against the Euro, compressingGBP's overall strength.
In the context of the Indian rupee, the INR has been under pressure, reaching a record low against the US dollar earlier in September due to decreased foreign capital inflows and rising visa fees. The Reserve Bank of India's efforts to stabilize the currency, including expanding short dollar forward positions, have had limited success in countering persistent demand for dollars among importers. Furthermore, weak manufacturing exports and a narrowing policy rate gap with the US are ongoing challenges, further complicating the rupee's outlook.
Current pricing for GBP to INR is nearing 30-day highs, around 118.3, reflecting a stable trading range of approximately 4.0% from 115.5 to 120.1. Analysts suggest that the forthcoming UK budget on November 26 is critical, as its implications on fiscal policy and economic health may influence the pound's movement. With the INR's structural weaknesses and the pound's potential challenges stemming from domestic fiscal concerns, traders should remain attentive to upcoming economic announcements that could impact these currencies.
