GBP/INR returned to its bullish stance while the UK market is closed in observance of Easter Monday.
Currently, GBP/INR is trading at 95.480, up 1.00% as of 6:35 AM UTC. The price has updated the highest level since March 11. It peaked earlier at 95.570, thus breaking a strong resistance level at about 95.000, which has been tested several times this month.
The world economy is still frozen due to the coronavirus pandemic, and no one knows what will happen next.
The Indian rupee is declining as the local lockdown measures imposed by the government are affecting the economy, which was already deteriorating even before the cases of COVID-19 showed up.
World Bank Expects Worst GDP Performance in 4 Decades
The World Bank said yesterday in a report that India and other South Asian countries might experience the worst gross domestic product (GDP) growth figure in about 40 years.
The South Asian region, which also includes Pakistan, Afghanistan, Bangladesh, Nepal, Sri Lanka, Bhutan, and the Maldives, is about to show economic growth of 1.8% to 2.8% this year, the World Bank said, down from the 6.3% it anticipated six months ago.
India’s economy alone is likely to show growth between 1.5% and 2.8% in the fiscal year that started in April. Also, the World Bank said that the economy likely grew 4.8% to 5% in the fiscal year ended last month. The report reads:
“The green shoots of a rebound that were observable at the end of 2019 have been overtaken by the negative impacts of the global crisis.”
India’s lockdown measures that touch upon 1.3 billion people have hit small and big companies, leaving millions without work. The World Bank warned that if the lockdown period is prolonged, the entire region will experience contraction this fiscal year.
Indian is about to restart some manufacturing activity on Wednesday, two government sources told Reuters. An official from the industries department said:
“We believe some industries could be allowed with reasonable safeguards as long as social distancing norms are maintained.”
Reuters also saw a separate letter in which the industries ministry had recommended to begin some manufacturing in textiles, auto, electronics, and defence, among others.
Previously, India has revealed a $23 billion economic plan to provide direct cash to millions of people in poverty hit by the lockdown measures.