GBP/INR started the month with a u-turn that slashed almost half of gains from an uptrend that began on October 28. Last Friday, representative of China and the US hinted that an interim trade agreement is just around the corner, increasing investors’ appetite for riskier trades. Now the rupee looks much stronger against the British counterpart, despite India’s troubling economy.

The pair has lost 0.24% in early trading on Monday, to 91.411 as of 06.30 AM UTC. The price took a breath yesterday when the pound seemed to resume the latest uptrend, but it seems now that it was only a temporary move.

Trump-Xi Trade Agreement is Close

The Indian rupee is benefiting from general optimism on the US-China trade deal. The deal is about to be signed between US President Donald Trump and Chinese counterpart Xi Jinping. The agreement might appease a trade conflict that has been around for about 16 months. INR is getting stronger as foreign investors buy more in Indian equities and debt market.

In the last three sessions, foreign investors have purchased a combined $2.1 billion in Indian equities and bond markets. At the time of writing, stock index BSE Sensex has gained 0.28%.

Indian Economy Continues to Struggle

After the euphoria around US-China trade deal ceases, the rupee will continue to be under massive pressure as the Indian economy shows serious signs of recession. The government and the Reserve Bank of India (RBI) have implemented some stimulus measures, but it remains to be seen if they have effect.

On Friday, the Centre for Monitoring Indian Economy (CMIE) said that the country’s unemployment rate rose to 8.5% in October, up from 7.2% in September. This is the highest figure since August 2016, which demonstrates a difficult situation in the labour market that suffers from the economic slowdown.

Previously, the government said that infrastructure output (ININFR=ECI) tumbled in September by 5.2% compared to the same period in 2018. In the period between April and September, the indicator rose 1.3%. The latest decline represents the worst performance in 14 years. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.