- 1 British pound buys 92.412 Indian rupees, down 0.29% as of 6:22 AM UTC.
- Moody’s Downgrades India’s GDP Growth Forecast
GBP/INR is declining in early trading on Friday. Currently, one British pound buys 92.412 Indian rupees, down 0.29% as of 6:22 AM UTC.
After a bullish rally from November 11 to 14, the pair has formed a so-called double top. This is a technical analysis pattern that suggests that the price cannot break a strong resistance level. And is about to turn bearish. If the price manages to break the so-called neckline of the pattern in the next few hours, the chances are that we will see a downtrend in the coming days.
As for the fundamentals behind a stronger rupee at the moment, the Indian currency is benefiting from an increasing trade optimism around the trade talks between the US and China.
Yesterday, Larry Kudlow, Director of the US National Economic Council under President Donald Trump, told reporters that the US and China were close to signing the first phase of a trade agreement. The two sides have been in close contact in the last few days, with negotiators from both parties holding video conferences. Kudlow said:
“We are coming down to the short strokes. We are in communication with them every single day right now.”
Moody’s Downgrades India’s GDP Growth Forecast
However, the rupee continues to be under pressure amid the ongoing economic slowdown. GBP/INR hit the highest level since March when it formed the recent double top pattern. The Indian currency weakened yesterday when Moody’s Investors Service cut India’s GDP growth outlook to 5.6% for 2019. Noting that the government measures were not sufficient to boost consumption demand. The rating agency said:
“We have revised down our growth forecast for India. We now forecast slower real GDP growth of 5.6 per cent in 2019, from 7.4 per cent in 2018. India’s economic slowdown is lasting longer than previously expected.”
Last month, Mood’s cut the country’s economic growth forecast for the fiscal year 2019-2020 to 5.8% from 6.2%. Besides this, last week, we reported that it had downgraded India’s outlook to negative from stable.