The recent forecasts for the GBP to INR exchange rate highlight a complex interplay of factors influencing both currencies. As of early December 2025, the British pound has displayed mixed performance, buoyed by market risk appetite, but facing downward pressure against the Euro amidst expectations of an interest rate cut by the Bank of England. Analysts note that fund managers in the UK are increasing their foreign exchange hedging due to heightened volatility in the pound, projecting a cautious outlook among investors.
On the other side, the Indian rupee has hit a record low of 90.42 per U.S. dollar, prompted by a widening trade deficit and substantial foreign investment outflows, totaling nearly $17 billion in 2025. The Reserve Bank of India (RBI) is allowing the rupee to weaken, focusing on managing excessive volatility rather than defending a specific exchange rate, as external pressures mount due to tariffs and reduced capital inflows.
Current data shows the GBP to INR trading at 119.6, which is 1.2% above its three-month average of 118.2. This range has remained relatively stable, oscillating between 115.5 and 120.4. The mixed outlook for the pound, coupled with the significant depreciation of the rupee, suggests that fluctuations may continue as these economic conditions evolve.
Investors and businesses engaged in international transactions should remain vigilant, as the potential for increased volatility persists in both currencies. Monitoring central bank policies and geopolitical developments will be crucial in navigating this complex currency landscape.
