GBP/INR continues to tumble on Wednesday morning, after losing 1.79% yesterday. Currently, the pair is trading at 94.932, down 0.80% as of 6:05 AM UTC.
Before Tuesday, the pair saw six consecutive bullish sessions during which it gained over 4.70%. The rally extended on Monday morning when oil prices crashed at one point by 30%. However, both Brent and WTI futures have bounced back since then, helping the rupee recover some of its previous losses.
GBP Under Pressure Amid Coronavirus Panic
Besides recovering oil prices, the sterling is under increased pressure amid the coronavirus epidemic in Europe, with Italy locking down the whole country. The UK government confirmed the sixth death caused by COVID-19, while the number of infected people increased from 319 to 373.
One of those infected is British junior health minister Nadine Dorries, who said that she was self-isolating. The official commented:
“Public Health England has started detailed contact tracing and the department and my parliamentary office are closely following their advice.”
The Times found out that Dorries met hundreds of people in Parliament last week and even attended a reception with Prime Minister Boris Johnson.
Bank of England Cuts Rate from 0.75% to 0.25%
The GBP/INR pair was down only 0.15% up until recently. The price tumbled after the Bank of England (BoE) cut the interest rate in an emergency move. All members of the BoE’s Monetary Policy Committee (MPC) voted to lower the rate from 0.75% to 0.25%. The move is meant to boost the economy amid
The Bank of England cut interest rates on Wednesday to bolster Britain’s economy against disruption caused by the coronavirus outbreak.
The central bank kept its target for government bond purchases to 435 billion pounds. It also launched a new term funding scheme aimed at small businesses.
The bank said in a statement:
“Although the disruption arising from Covid-19 could be sharp and large, it should be temporary. The Bank of England’s role is to help UK businesses and households manage through an economic shock.”
Later today, the UK will release a series of economic data, including the gross domestic product (GDP), construction output, industrial production, manufacturing production, and trade balance.
