Latest UK Referendum News Amplifies Tension between ‘In’ and ‘Out’ Campaigns, Pound Sterling (GBP) exchange rates struggle.
The Pound Sterling has lost out by a small amount against the Indian Rupee today, on account of the most recent oil price movement.
The INR has risen against Sterling slightly today, thanks to a recent drop off in the price of crude oil. If UK borrowing happens to have declined tomorrow, the Pound could stage something of a comeback.
Disappointing UK employment data failed to push the pound to rupee exchange rate onto a downtrend, in spite of unemployment rising for the first time in seven months.
Demand for the Rupee weakened as the end of the Kuwaiti oil workers’ strikes prompted a fresh decline in oil prices, diminishing the market appetite for higher-risk assets.
The British pound appreciated against the Rupee (GBP/INR) on Tuesday thanks to the day’s developments.
On the one hand, the price of oil has crept upwards, which has generally weakened the appeal of the Rupee.
On the other, a recent ‘Brexit’ poll has boosted the Pound’s appeal by showing a current lead for the ‘In’ vote.
Oil prices rallied strongly after it was revealed that a workforce strike in Kuwait had reduced the country’s output by 60%, a decrease of roughly 1.7 million barrels per day.
This failed to particularly dent the Pound Sterling to Indian Rupee (GBP/INR) exchange rate, however, after an opinion poll suggested that the ‘Remain’ campaign was amassing a strong lead over the ‘Leave’ camp.
The appeal of the British pound has been diminished lately, on account of the most recent forecast to come out of the Treasury regarding the UK Referendum’s possible outcomes.
This has placed a -6% loss of national GDP up to 2030, along with the nation being ‘permanently poorer’ coming in the event of a ‘Brexit’ vote.
Although the ‘Leave’ campaign has ridiculed the claims, the news has nonetheless greatly increased the stakes for an ‘Out’ vote in the Referendum, something that economists are increasingly expressing concern over.
Latest Pound/Rupee Exchange Rates
On Monday the Pound to British Pound exchange rate (GBP/GBP) converts at 1
The live inter-bank GBP-GBP spot rate is quoted as 1 today.
The GBP to EUR exchange rate converts at 1.17 today.
FX markets see the pound vs swiss franc exchange rate converting at 1.143.
NB: the forex rates mentioned above, revised as of 29th Apr 2024, are inter-bank prices that will require a margin from your bank. Foreign exchange brokers can save up to 5% on international payments in comparison to the banks.
UK Economic Data due This Week Includes BoE Meeting, Unemployment Rate
The next economic event from the UK that is likely to have an impact will be tomorrow afternoon’s meeting between Bank of England (BoE) Governor Mark Carney and the Lords Economic Affairs Committee.
The policymaker is expected to discuss the BoE’s general economic outlook for 2016, which is sure to include some commentary on the potential impacts of the UK Referendum outcome, either way.
The other major UK ecostat to watch out for will be the ILO unemployment rate result for the three months to the end of February; a reprint at 5.1% has been forecast.
Indian Rupee Drops Off as Inflation Rate Results Fail to Appease
The Indian Rupee has performed poorly against Sterling today, which comes in spite of a recent dive in the global price of crude oil.
This commodity price slump has been triggered by the recent failure of the OPEC members meeting in Doha, which saw no progress in member attempts to cut the amount of oil produced.
On the domestic front, the Rupee has fallen in appeal due to the WPI base, manufacturing and fuel inflation rate results for March generally falling into or remaining in negative ranges on the year.
Shortage of Remaining Indian Data This Week could Leave INR at the Mercy of Oil Prices
The most recent piece of Indian data has been the nation’s trade balance outcome for March, which has shown a marginal improvement of the still-negative deficit.
The remaining pieces of Indian data due this week are extremely few in number and not considered high-impact, therefore the Rupee may slide overall against the more active Pound.
The data in question will consist of Friday’s foreign reserves outcome to the 15th of April, which previously printed at $359.92bn.
Opposition to Today’s Treasury Report Leaves Osborne Unfazed
Against the general rancour of ‘Out’ campaigners, Chancellor George Osborne has stood by his department’s recent report, which has been controversial, to say the least.
Speaking on Radio 4 earlier, the Chancellor stated that:
‘The conclusions could not be clearer. Britain would be permanently poorer if we left the EU to the tune of £4,300 for every household in the country. That's a fact everyone should think about’