GBP to INR: British Pound to Indian Rupee Trends Review

The GBP to INR exchange rate, currently around 106.91 INR per GBP, reflects complex dynamics influenced by economic indicators like GDP growth, inflation, and employment statistics. Historical events such as Brexit and recent geopolitical tensions have notably impacted currency stability. Recent market fluctuations have shown highs of 108.4760 INR and lows of 105.6770 INR, while technical analysis suggests varied trends. Short-term forecasts predict a range between 107.16 and 107.47 INR, with medium-term projections cautious of a bearish outlook. Understanding these patterns requires examining market speculation, interest rate differentials, and technical indicators to anticipate future movements, revealing deeper insights.

Key Takeaways

• The current GBP to INR exchange rate is about 106.91 INR as of December 26, 2024.
• Interest rate differences impact investment flows; UK’s rates generally attract more investments compared to India.
• Recent exchange rate movement shows a minor decrease of 0.16% over the last 24 hours.
• Historical events like Brexit drastically affected GBP to INR, with significant declines noted post-referendum.
• Short and medium-term forecasts suggest a bearish trend with potential fluctuations and a broader range of 107.0385 to 110.5855 INR.

Current Exchange Rate Overview

The current exchange rate for the British Pound (GBP) to Indian Rupee (INR) stands at approximately 106.91 INR per GBP as of December 26, 2024. This rate indicates a slight decrease over the past week, showing a change of -0.244%, with a minor 24-hour decline of -0.16%. These fluctuations highlight the dynamic nature of currency exchange, where numerous factors play essential roles. Economic indicators such as GDP growth, inflation rates, and employment data from the UK and India considerably influence the GBP/INR rate.

In addition, interest rate differentials between the two countries can shift investor focus. For instance, when the UK offers higher interest rates than India, it tends to attract more foreign investment, bolstering the value of the GBP. Political stability and government policies can also sway investor confidence, consequently affecting currency value. Services like Wise and BookMyForex provide access to these real-time rates. These platforms often use the real, mid-market rates without adding hidden fees, ensuring users get a fair deal while exchanging currencies. They offer users the advantage of live rate updates, historical data, and notifications for favorable rates, enabling individuals to optimize their currency exchanges and save on fees. Understanding these influences and services is crucial for anyone involved in trading or transferring funds internationally.

Recent Highs and Lows

The recent trends in the GBP to INR exchange rate reveal significant fluctuations, with a 30-day high of 108.4760 INR and a low of 105.6770 INR, indicating notable short-term volatility. Comparing these recent figures to historical data, the exchange rate reached a peak of 112.2310 INR within the last 90 days, showcasing a marked increase from the highest rate in 2022 at 102.772 INR. Exchange rates significantly affect international trade, highlighting the importance of monitoring these movements carefully. Understanding the causes behind these movements is essential for traders and individuals alike, as rate volatility can have substantial implications for strategic decisions in forex trading and in planning cost-effective currency exchanges.

Last 30 Days Overview

Currency enthusiasts have witnessed notable fluctuations in the GBP to INR exchange rate over the past 30 days. This period has been characterized by significant highs and lows, indicative of a dynamic trading environment. The highest rate recorded in this timeframe reached 108.4760 INR, setting a recent benchmark. The lowest point touched was 105.6770 INR, highlighting the currency’s variability. Despite short-term fluctuations, the 30-day average settled at 107.3028 INR, suggesting a stable trend over the broader period. Recent market activity is highlighted by a daily volume of 21,669, showcasing a lively trading environment compared to the year-to-date average volume of 16,262 trades. The British Pound has exhibited resilience against the Indian Rupee, as observed in the continual, albeit fluctuating, appreciation over the last six months. Analyzing these trends, it is evident that factors such as interest and inflation rates in both the UK and India have played substantial roles. The UK’s interest rate stands at 4.75%, contrasted with India’s 6.50%, potentially affecting exchange rates. Additionally, inflation rates, with the UK at 2.6% and India at 5.48%, further differentiate the economic landscape influencing currency values. As observed, when coupled with manufacturing PMIs—47.3 for the UK and 57.4 for India—the GBP to INR exchange rate remains susceptible to these economic variables, informing both trading strategies and currency exchanges.

Historical Peak Comparison

Analyzing recent fluctuations within the GBP to INR exchange rate reveals significant insights into contemporary forex dynamics. In 2024, the exchange rate reached its annual high of 112.551 on September 30, marking an impressive milestone in the currency pair’s historical trend. This peak emphasizes the pound’s strength during that period. Conversely, the year’s low was recorded on April 22, with the rate dipping to 103.00, highlighting the pound’s relative weakness against the rupee. These extremes delineate a high-low range from 112.16 to 103.00, indicating a notable variation and offering a glimpse into the broader market conditions.

Monthly fluctuations also provide insights, with September 2024 witnessing notable highs of 112.16, and the current month’s high reaching 108.3992. Recent lows show a moderate increase, with April 2024’s 103.00 contrasting with the current month’s low of 106.916. These shifts reflect ongoing market adjustments.

The average exchange rate stood at 106.95 for 2024, with an annual increase of 1.13%. Market dynamics were further characterized by a standard deviation in monthly returns of 2.94% and a highest five-day change of 0.16%. Collectively, these statistics highlight significant rate movements within the year.

Rate Volatility Insights

Current market dynamics reveal a nuanced picture of GBP to INR rate volatility, marked by recent highs and lows shaping trading opportunities. The recent exchange rate dynamics show a moderate decrease of 0.33%, with the current rate standing at 108.1125 INR. Over the past week, the rate fluctuated between a high of 108.4741 INR and a low of 107.8945 INR, reflecting low short-term volatility at 0.54% but moderate monthly fluctuations with a standard deviation of 2.94%. These trends are indicative of a market impacted by influential economic factors.

• Recent exchange rate of 108.1125 INR marks a 0.33% decrease.
• 7-day volatility is 0.54%, suggesting a stable short-term market.
• 30-day volatility recorded at 2.53%, showing moderate movement.
• Current 50-day SMA is 107.60 INR, suggesting long-term adjustment.

The Reserve Bank of India’s neutral stance, maintaining a benchmark repo rate at 6.5%, alongside the Bank of England’s monetary policies, considerably influences the GBP to INR dynamics. Economic indicators such as PMI and GDP forecasts also impact rate volatility. As global economic shifts emerge, understanding these factors becomes essential for maneuvering potential market movements and financial strategies effectively.

Long-term Historical Trends

Since its inception, the GBP to INR exchange rate has reflected a tumultuous interplay of economic shifts and policy decisions. From the time of India’s independence in 1947, when the rate was 13.33, historical incursions have greatly shaped this currency pair’s trajectory. For instance, the devaluation in 1949 saw a minor dip to 13.30, while a notable 14.3% devaluation in 1967 under Prime Minister Harold Wilson further influenced the rate. The dissolution of the Bretton Woods system in 1971 marked a critical shift point even as the INR maintained its peg to the USD until 1975.

Brexit and Major Events Impact

The historical trajectory of GBP to INR has been shaped profoundly by political and economic events, and the repercussions of Brexit mark a significant chapter in this ongoing narrative. The 2016 Brexit vote immediately triggered a sharp decline in the British pound’s value against the Indian rupee, signifying market apprehension about the UK’s economic future. Subsequent uncertainty surrounding post-Brexit trade agreements and political dynamics further entrenched the pound’s depreciation, leading to a record low in 2017. Additionally, the anticipated decrease in foreign investment due to heightened trade costs exerted continued downward pressure on GBP.

• Brexit Vote (2016): The pound fell sharply, hitting a record low against INR in 2017.
• Post-Brexit Uncertainty: Political turmoil and unclear trade deals weakened the pound’s value.
• Trade Costs and Foreign Investment: Predicted declines in investments adversely affected GBP.
• Interest Rate Changes: The vote prompted shifts in interest rates, influencing market returns.

These events underscore the intricate interplay between geopolitical developments and currency fluctuations. Additionally, major events such as the COVID-19 pandemic and the Russia-Ukraine conflict have compounded the volatility, reflecting the multifaceted influences on the GBP to INR exchange rate over recent years.

Key Economic Indicators

When analyzing the GBP to INR exchange rate, understanding key economic indicators is essential, as they offer important insights into currency valuation. Economic growth, inflation rates, employment data, and interest rates are some of the principal indicators influencing the exchange rates between the British Pound and the Indian Rupee. For instance, GDP growth is a critical determinant; the UK’s expected economic growth of 7.2% in 2021 and India’s 7.5% indicates an ongoing recovery which can influence the currency dynamics notably.

Inflation rates further affect this valuation, with India’s inflation at 5.48% compared to the UK’s 2.6%. Such disparities can lead to currency depreciation, as higher inflation in India may weaken the INR relative to the GBP. Employment data, reflected in Manufacturing PMI figures, also plays an important role; with the UK’s PMI at 47.3 and India’s at 57.4, the latter indicates stronger economic activity. Additionally, interest rates are essential as they dictate foreign investment flows—currently, the UK’s interest rate stands at 4.75%, while India’s is at 6.50%. Understanding these indicators provides a foundation for informed forex trading and currency exchange decisions.

Influence of Market Speculation

Market speculation plays a pivotal role in the dynamics of the GBP/INR exchange rate, shaping its fluctuations through various economic and geopolitical influences. Understanding these speculative trends is essential for both traders and individuals involved in currency exchange. Speculation about potential rate hikes by the Bank of England has the potential to strengthen the pound against the rupee, as market players anticipate shifts in monetary policy. Inflation forecasts and market sentiment are also critical in determining the direction of the GBP/INR rate. Additionally, the interplay between central bank policies—particularly the Bank of England and the Reserve Bank of India—has a pronounced impact on this currency pair.

• Speculative Trends: Investment forecasts reflect economic indicators, influencing the GBP/INR exchange rate.
• Central Bank Influence: Monetary policies by the UK’s and India’s central banks drive market speculation.
• Geopolitical Influence: Global uncertainties, such as post-pandemic recoveries, affect GBP/INR speculation.
• Market Dynamics: The relationship between spot and futures returns impacts the GBP/INR exchange rate’s volatility.

Technical Analysis Insights

How does one effectively navigate the GBP/INR exchange landscape using technical analysis? Technical analysis provides a robust framework for interpreting market behavior through various indicators and patterns. Key factors include moving averages across multiple durations (5, 10, 20, 50, 100, 200 DMA), all signaling a bullish trend. The Relative Strength Index (RSI) indicates a strong market position at 67.58, while the Moving Average Convergence Divergence (MACD) reinforces a bullish sentiment with positive values.

However, the Stochastic and Williamson%R both highlight an overbought condition, suggesting potential caution due to elevated readings (89.68 and -10.90, respectively). The Commodity Channel Index (CCI) presents conflicting signals at -139.45 and 136.05, indicating the need for careful interpretation. High volatility is evident from the Average True Range (ATR) and Bollinger Bands, reflecting potential price swings.

Support and resistance levels, particularly near the 107.036 – 105.62 range, are essential in anticipating price reversals. Historical data reveal GBP/INR’s 23.13% increase since 2017, emphasizing strategic awareness. By integrating these insights, traders can discern potential opportunities and mitigate risks inherent in current market conditions.

Short and Medium-term Forecasts

The GBP to INR exchange rate landscape presents a complex interplay of market forces and economic indicators, essential for any forecast analysis. Short-term forecasts suggest volatility, with today’s rate standing at 106.9874 INR per British Pound, and a potential range between 107.1601 and 107.466 INR. The 7-day outlook anticipates rates oscillating between 106.7169 and 107.7718 INR, reflecting minor fluctuations. In the next 30 days, a broader range is projected, from 107.0385 to 110.5855 INR, indicating potential upward movement.

In the medium term, the outlook appears bearish, guided by the following projections:

• 3-Month Forecast: A slight increase to 107.315 INR, marking a 0.2% rise.
• 2-Month Forecast: A significant decrease to 99.815 INR, indicating a 7.31% drop.
• 11-Month Forecast: Further decline to 99.4 INR, showing a 7.69% reduction.
• Overall Trend: Consistent bearish sentiment, shaped by moderate volatility at 0.72%.

Technical indicators such as the 50-day and 200-day SMAs highlight a downward trajectory, with the 50-day sitting at 107.60 INR and the 200-day at 108.31 INR. The Relative Strength Index (RSI) of 42.59 implies no significant oversold condition, reinforcing the bearish sentiment.

Long-term Currency Predictions

Long-term currency predictions for the GBP to INR exchange rate involve a complex interplay of economic, political, and speculative factors that influence both short and extended trends. Economic indicators such as GDP growth, inflation rates, and employment data in the UK and India play pivotal roles. Interest rates set by central banks, like the Bank of England and the Reserve Bank of India, are instrumental in attracting or repelling foreign investment, consequently influencing currency values. Political stability and market speculation further contribute to the exchange rate’s dynamics.

Historical occurrences, such as India’s economic liberalization and the Brexit referendum, have left lasting imprints on this currency pair. The GBP/INR has exhibited notable long-term resilience, reflected by the 23.13% appreciation since 2017. Technical analysis highlights critical support levels at 104.00 and 98.00, suggesting potential downward momentum if breached. Upcoming forecasts suggest a decline in GBP/INR to 99.815 in two months, driven by inflation and market sentiment.

Conclusion

The GBP to INR exchange rate reflects a multifaceted interaction of economic, geopolitical, and market factors, offering insights into the fiscal health and policies of both the UK and India. Historical trends, key economic indicators, and occurrences such as Brexit greatly influence this currency pair. Furthermore, market speculation and technical analysis provide further layers of complexity. Understanding these dynamics, integrated with short- to long-term forecasts, is essential for those engaging in forex trading and international financial transactions.

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