GBP looks much more confident on Wednesday against INR, gaining 0.27% as of 06:19 AM UTC, to 91.429.
GBP/INR broke the resistance line of a bearish channel as suggested yesterday. It is looking to bounce back to the 92.000 level.
Indian Economy Still Torpid
The rupee has been under pressure as the Indian economy doesn’t show signs of recovery.
However, there are optimistic voices too. On Tuesday, multibillionaire Mukesh Ambani said that the current slowdown was temporary and that the reforms implemented by PM Modi since last August would revive the economy in the next few quarters.
“All the reform measures that have been taken in the last few months will show the outcome. I am quite sure that in the coming quarters this will reverse,” the magnate said.
UK Likely to Hold Election on December 12
GBP/INR started to rise shortly after the UK parliament approved Boris Johnson’s bid to hold a national poll in December. The PM hopes that the election will favour his governing Conservative Party, which would pave the way for Brexit deal.
British citizens are expected to vote on December 12. The House of Commons gave the green light by a margin of 438 votes to 20. The bill has to go through the House of Lords, but it could become law by the end of Friday.
Johnson said it was time to “come together to get Brexit done.” The PM has readmitted 10 of the 21 Conservative members of parliament (MPs), previously expelled for opposing his Brexit plans.
Elsewhere, Jeremy Corbyn, leader of the opposition Labour Party, said:
“This election is a once-in-a-generation chance to transform our country and take on the vested interests holding people back.”
He added that the Labours would “now launch the most ambitious and radical campaign for real change that our country has ever seen.”
Yesterday, the UK released several economic updates for the housing market. The House price index (HPI) accelerated by 0.4% in October year-on-year, according to a report by Nationwide. The monthly growth was also modest, as the indicator was up 0.2% from September (seasonally adjusted).
Separately, the Bank of England reported that mortgage approvals and mortgage lending beat expectations in September.