GBP/INR Moving Sideways, Coronavirus Still Grabs the Headlines

GBP/INR has been moving sideways since Tuesday evening.

The pair is currently trading at 92.317, showing no daily change as of 6:10 AM UTC.

GBP/INR – GBP recovers thanks to slight annual growth

Yesterday, the rate touched the lowest level since January 14, but the sterling recovered after the UK Office for National Statistics released data on economic growth and the performance of its main components. While the British gross domestic product (GDP) flat-lined in the last quarter of 2019, the annual growth was slightly higher than analysts’ expectations. However, business investment and manufacturing output dropped over the same period, which hasn’t allowed the pound to enjoy a healthier rally.

Elsewhere, the Indian economy also struggled, but finance minister Nirmala Sitharaman recently said that the economic performance was about to make a u-turn. He mentioned seven “green shoots,” including goods and services tax collections, higher foreign direct investment (FDI), industrial growth in November, dynamic stock markets, the purchasing managers’ index for last month, and foreign portfolio inflows. Sitharaman explained:

“Global sentiment is in favour of India. Foreign investors continue to show confidence in India. And that is why the country has attracted a net FDI of $24.4 billion in April to November of 2019-20, as compared to $21.2 billion (during) the same period the previous year.”

Indian Rupee growth still at risk from coronavirus outbreak

India’s chief economic adviser Krishnamurthy Subramanian said on Monday that the economy was experiencing a nascent recovery, but it faced risks from the coronavirus outbreak in China.

Indeed, everyone is talking about the virus right now. The death toll has reached 1,115 lives, most of them in mainland China. Over 1,000 deaths have occurred in the province of Hubei, where the city of Wuhan is located. President Xi Jinping promised that China would meet its economic objectives and would win the fight against the new virus.

Speaking with Indonesian leader Joko Widodo on Tuesday, Xi Jinping said:

“We have the ability and confidence not only to defeat the epidemic, but also to accomplish the set goals and tasks for economic and social development. I believe China will be more prosperous after overcoming this epidemic.”

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