GBP/INR Tumbles for Sixth Consecutive Session

GBP/INR is in free fall in early trading on Monday. The pair has lost 0.40% as of 5:40 AM UTC, to 92.258. If the current session ends in red, this will be the sixth consecutive bearish day.

The pound has become less attractive to investors after the Bank of England (BoE) hinted to signs of dovishness within its Monetary Policy Committee (MPC). Two out of nine members have already voted to cut the interest rates during the previous two meetings last year. Meanwhile, other members admitted that they were ready to support a rate cut within the next months.

Everything started with BoE Governor Mark Carney, who surprised the market on Thursday by saying that the central bank would cut the rate if the economic weakness persists.

On Friday, MPC member Silvana Tenreyro said she would be inclined to vote for an interest rate cut later this year if the economic growth keeps sluggish.

On Sunday, policymaker Gertjan Vlieghe said he would also support a rate cut at the next meeting later this month. Only an „imminent and significant” improvement would change his mind. Vlieghe told the Financial Times:

„Personally I think it’s been a close call, therefore it doesn’t take much data to swing it one way or the other. I really need to see an imminent and significant improvement in the UK data to justify waiting a little bit longer.”

Elsewhere, the Indian currency has become more confident amid decreasing oil prices, as investors have moved away from the Middle East tensions for a while. Last week, surging crude prices were a burden for the Indian importers.

On Friday, India released its index of industrial production (IIP), which increased 1.8% in November, after three months of contraction. In October, the indicator declined by 3.9%.

Yes Bank chief economist Shubhada Rao commented:

“Overall, IIP is providing early signals of bottoming out of growth slump. This is also in sync with survey-based PMI indicators and our expectation of a mild recovery in the second half of FY20.”

Mining and manufacturing output increased by 1.7% and 2.7%, respectively, in November. However, electricity generation fell 5%. 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.