The current market bias for the INR to GBP exchange rate is bearish.
Key drivers include the interest rate differential, as the Bank of England is expected to slow down its rate cuts, keeping the GBP relatively firm. In contrast, the Indian Rupee faces potential depreciation due to projected economic challenges. Additionally, India's inflation trends may influence the INR's performance negatively.
In the near term, the trading range for the INR to GBP is likely to remain stable but somewhat lower than its recent average.
Upside risks could arise from possible improvements in India's trade agreements, while downside risks include continued foreign portfolio outflows and weaker economic performances, which could pressurize the INR further. The INR to GBP is currently 2.2% below its three-month average, suggesting a cautious outlook for those engaged in currency exchanges.