GBP/INR: Rupee Down on India’s Wholesale Inflation, GDP Outlook

GBP/INR is surging in early trading on Monday. Currently, the pair is trading at 95.111, up 0.76% as of 6:38 AM UTC. The price has gained over 3% since last Thursday’s low at 92.275, touched before the UK election that saw UK Prime Minister Boris Johnson’s Conservative Party securing a major victory.

Earlier today, India released its wholesale price inflation data, which came below analysts’ forecasts. The Ministry of Commerce and Industry said that the Wholesale Price Index (WPI) rose to 0.58% last month from 0.16% in October, while economists anticipated an increase to 0.75%. Primary articles inflation rose to 7.68% in November, up from 6.4% recorded in the previous last month. Manufactured goods inflation was unchanged at 0.84%. The WPI was driven by food inflation, which rose to 11% against 9.8% in October.

Last Friday, rating agency Moody’s cut its 2019 economic growth outlook for India to 5.6%, citing slow employment growth and stagnating consumption. The agency’s Investors Service unit anticipate growth acceleration in 2020 and 2021, to 6.6% and 6.7% respectively, though the pace of growth maintains below past forecasts.

The rupee is slipping against the British counterpart despite the US-China trade optimism. The world’s two biggest economies cooler their trade conflict on Friday, finally reaching consensus for a phase one deal to be signed next month. The US is giving up the additional tariffs that were set to take effect on December 15, while China pledged to buy US agriculture goods and other products and services.

Trump tweeted:

We have agreed to a very large Phase One Deal with China. They have agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, plus much more. The 25% Tariffs will remain as is, with 7 1/2% put on much of the remainder.”

Elsewhere, the pound is supported by investors’ sentiment that Johnson would speed up the Brexit process. The PM will likely put the Withdrawal Agreement Bill (WAB) back to the vote in UK Parliament before Christmas. Johnson wants to “get Brexit done” by January 31 and reach a trade deal with the EU by the end of 2020. 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.