GBP/INR is slightly declining on Wednesday morning, after gaining 0.27% yesterday. Currently, the GBP and INR pair is trading at 92.975, down 0.05%. The price action is moving along the support line of an uptrend that started on February 10, and if it breaks it below, the bearish stance might gain momentum. However, the chances are that the price will return to growth.
INR Likely Supported by Hopes that Coronavirus Epidemic is Slowing
While there is a lack of fundamentals to support this move, the Indian rupee is probably reacting positively on the hopes that the coronavirus outbreak in China is slowing down.
The World Health Organization (WHO) stated that China’s measures to limit people’s movement have prevented the more rapid spread of the new coronavirus called COVID-19. China’s government also pointed to the recent figures as proof that the epidemic was slowing down.
Nevertheless, the death toll continues to grow and has exceeded the 2,000 mark. Many experts agree that it is too early to rule out that the worst is yet to come.
Professor Malik Peiris, chief of virology at the University of Hong Kong, told the New York Times:
“It could be unwise for anybody in China, or outside China, to be complacent that this is coming under control at this point in time.”
Yesterday, Chinese authorities reported 1,886 new cases in the previous 24 hours. That was the first time this month when the number of new cases declined below 2,000. Today, China confirmed even fewer cases at 1,749. The total number of infections in China is 74,185.
Chinese officials and the WHO suggest that the numbers show that the aggressive measures taken by the government are proving efficient. Local media reported that President Xi Jinping had a phone call with UK Prime Minister Boris Johnson yesterday, telling him that China was making progress in addressing the epidemic.
The rupee might also be supported by hopes that India would reach a trade agreement with the US, as American President Donald Trump is set to visit the country in a few days. However, Trump suggested that the likelihood of signing a trade deal during his visit was minimal.
He told reporters:
”Well, we can have a trade deal with India, but I’m really saving the big deal for later on.”