GBP/INR: Rupee Weakens Amid Surging Oil Prices

GBP/INR is surging in early trading on Monday. Currently, the pair is trading at 94.263, up 0.45% as of 5:10 AM UTC.

The rupee has been under pressure amid increasing oil prices, which affect Indian importers. Both WTI and Brent crude brands have increased by about 2%, with the latter exceeding the $70 level for the first time since May 2019.

Oil prices have extended their uptrend after US President Donald Trump threatened Iraq with sanctions amid tensions with Iran.

On Friday, oil quotations surged over 3% after a US airstrike killed a senior Iranian commander in Iraq.

Ayham Kamel, an analyst at Eurasia Group, said that the incident “will trigger a long cycle of regional escalation with significant risks to U.S. assets and Mideast energy infrastructure that nevertheless stop short of war.”

“But the risk of limited conflict is real. It would include substantial Iranian attacks on Gulf energy targets and direct naval clashes between the U.S. and Iran,” he added.

The rupee couldn’t be saved by India’s better-than-expected services data. Earlier today, IHS Markit said that the country’s services sector expanded to the highest level in five months in December. The services business activity index rose from 52.7 in November to 53.3 in December. This is the second-highest rate of increase in more than a year. The 50 mark separates expansion from contraction.

Pollyanna de Lima, Principal Economist at IHS Markit, commented:
“The news of sustained job creation, robust new order growth and a pick-up in business confidence suggest that expansion can be maintained in the early part 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.