inr-symbol-forex-performanc - INR

GBP/INR is declining in early trading on Monday amid fears of the coronavirus spread in Europe. Currently, one British pound buys 92.918 Indian rupees, down 0.23% as of 5:09 AM UTC. The pair saw a two-day rally until Friday but couldn’t break a strong resistance level at around 93.200.

INR Supported by China’s Readiness to Boost Stimulus

The rupee reacted positively on China’s intention to ease its monetary policy in an effort to address the repercussions of the coronavirus outbreak. China is India’s second-largest trade partner after the US.

China’s government hinted that it was ready to boost stimulus in the fiscal and monetary policy as the coronavirus epidemic is affecting the world’s second-largest economy.

On Friday, Chinese officials promised to President Xi Jinping that they would be open to using fiscal policy to exert “more flexibility” when it comes to monetary easing. Investors interpreted their message as more dovish compared to the monetary policy green-lighted at an economic meeting in December.

Separately, People’s Bank of China’s (PBOC) Deputy Governor Liu Guoqiang stated that the central bank would release part of the reserves of several commercial banks to help long-term funding of the economy. The PBOC might also adjust the benchmark deposit rate when needed.

The coronavirus outbreak is affecting an economy that was already seeing its growth slowing down.

Song Yu, chief China economist at Goldman Sachs-backed Beijing Gao Hua Securities, commented:

We expect policy loosening to be broad based with the main difference from previous loosening cycles likely to be in the property area. It appears increasingly likely that the budget deficit will be adjusted, though any adjustment will likely be small, no more than 3.5% as an upper limit.”

However, the economist said that the broader augmented fiscal deficit would definitely be much larger.

GBP Under Pressure Ahead of Post-Brexit Trade Deal

Elsewhere, sterling investors are closely watching the spread of the coronavirus, also called COVID-19, in Europe, where Italy is the place to the greatest concentration of the virus after China. The popular Venice Carnival was canceled, as well as several football matches of the Serie A league.

Also, the pound is under pressure amid political tensions ahead of the post-Brexit trade talks between the UK and Europe. French President Emmanuel Macron said on Saturday that he wasn’t confident whether a trade deal would be reached by the end of this year. 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.