GBP/INR Advances on Middle East Tensions

GBP/INR is enjoying its first bullish day of this year on Friday. Currently, the pair is trading at 94.041, up 0.30% as of 6:05 AM UTC. 

Despite benefiting from better-than-expected Indian manufacturing data, the rupee is under pressure amid re-escalating geopolitical tensions in the Middle East, after the US launched an airstrike in Iraq earlier today.

The news boosted oil prices, with both Brent and WTI crude brands showing gains of about 3% at the time of writing. The rupee is under increased pressure because the Indian economy wouldn’t welcome tensions in the Middle East and also because more expensive oil negatively impacts Indian importers. 

The British pound acts more as a safe-haven asset in this case, especially when the UK is leaving the European bloc and is going its own way. 

The UK is about to exit the European Union on January 31. However, there is another important deadline for the Brexit transition period, currently set for the end of December 2020. The withdrawal process is now in the hands of UK Prime Minister Boris Johnson, who unexpectedly won a large majority in the election last month. Johnson is quite determined to “get Brexit done” as fast as possible. He ruled out any attempt to extend the deadline for the transition period – a move that might lead to a no-deal Brexit. 

The opposition Labour Party wants to reverse Johnson’s amendment to the Withdrawal Agreement Bill (WAB). When the WAB returns to the House of Commons, Labours will call for a two-year extension to the transition period. However, it is unlikely that they will succeed given the Conservatives’ dominance. 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.