GBP/INR is bouncing back on Thursday, after two bearish sessions. Currently, the pair is trading at 94.983, up 0.56% as of 6:15 AM UTC. In the last two sessions, the pair lost 3%. The price peaked at 95.368 earlier in the morning.
Yes Bank Seizure, Coronavirus Hit Rupee
The Indian rupee is under pressure amid concerns over the economic impact of the coronavirus outbreak and the seizure of Yes Bank by the Reserve Bank of India (RBI). INR has been the worst-performing currency in Asia this month after the Yes Bank panic escalated.
Also, India is watching the progress of the coronavirus outbreak. Yesterday, the government suspended most visas in an effort to curb the spread of the virus.
The World Health Organization (WHO) declared the coronavirus outbreak a pandemic, with the virus likely to spread to all countries.
WHO Director General Tedros Adhanom Ghebreyesus said during a press conference on Wednesday:
“WHO has been assessing this outbreak around the clock and we’re deeply concerned both by the alarming levels of spread and severity and the alarming levels of inaction. We have therefore made the assessment that Covid-19 can be characterized by ‘pandemic’.”
However, he admitted that the situation could be changed if all countries become involved in the fight against the virus.
The number of worldwide cases exceeded 124,000, while the death toll reached 4,600. India has confirmed 60 cases.
RICS’ House Prices Index Jumps to +29
Elsewhere, the sterling has become more confident after the Royal Institution of Chartered Surveyors (RICS) published its index of house prices, which rose at the fastest pace in about four years last month. Nevertheless, the RICS survey reveals concerns over the coronavirus impact.
RICS house price balance surged to +29 in February, from +18 in January, beating all forecasts. This was the strongest performance since April 2016.
RICS’s chief economist Simon Rubinsohn commented:
“For now at least, feedback around expectations are consistent with activity levels continuing to strengthen albeit relatively modestly.”
RICS data showed that gains were strongest in London, Yorkshire and the Humber, and in East Anglia.
Yesterday, the Bank of England (BoE) surprisingly cut the interest rate by 0.50% in an emergency move to stimulate the economy amid the coronavirus outbreak.
