GBP/INR Bounces Back, Trades Above 92.500

GBP/INR is recovering some of the losses incurred on Wednesday and Thursday when the pair declined by almost 0.80% in total.

Currently, one British pound buys 92.562 Indian rupees, up 0.28% as of 6:10 AM UTC.

Pound sterling, supported by UK data

While the Indian markets are closed in observance of Mahashivratri holiday, the sterling leverages the upbeat economic data published yesterday.

A measure of UK manufacturing orders rose to a six-month peak in the current month, confirming the strengthening of the businesses confidence after the December election. The Confederation of British Industry’s (CBI) said yesterday that its manufacturing orders balance increased to -18 in February from -22 the previous month, beating analysts’ forecasts of a rise to -19.

CBI economist Alpesh Paleja commented:

“It is encouraging to see manufacturers reporting some early signs of a turnaround in activity, but it’s probably still too early to say whether we’ve seen the end of the slowdown in the sector.”

Output expectations increased to their highest level in 12 months, according to CBI data.

However, despite the current optimism, the manufacturing industry is still dealing with longer-term uncertainty, given that the UK and the European Union have different preferences when it comes to the post-Brexit trade deal.

Separately, the Office for National Statistics (ONS) said that British shoppers started to spend more in January compared to the end of last year. The retail sales index rose 0.9% last month, after a 0.5% decline in December, beating analysts’ forecasts.

Excluding fuel sales, retail sales surged 1.6% on the month, which is the most since May 2018. Economists anticipated an increase of 0.8%.

Indian rupee monitors talks on coronavirus

Elsewhere, the rupee is affected by ongoing talks about the coronavirus outbreak in China and beyond it. The finance leaders from the G20 countries are meeting in Saudi Arabia this weekend to discuss the risks poses by COVID-19.

China reported an increase in the number of new cases today. The death toll rose by 118.

Bank of Japan Governor Haruhiko Kuroda said to the parliament:

“We’re watching the impact with grave concern and keeping a close eye on downside risks.”

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