The GBP to INR market is currently bearish, showing signs of volatility and potential downward pressure.
Key drivers include the interest rate differential, with the Bank of England expected to cut rates to 3.25% as inflation slows. In contrast, the Reserve Bank of India’s stance remains relatively stable, supporting the rupee. Economic growth in the UK is projected to decelerate, which may impact the pound’s value negatively.
The near-term trading range for GBP to INR is expected to remain somewhat stable, averaging around 121, although subject to fluctuations. Analysts note that this current price is above its recent average, indicating a 2% rise.
An upside risk could emerge from stronger-than-expected UK retail sales that bolster the pound, while a downside risk exists if global tensions or poor economic data further weaken risk sentiment towards the GBP.