The pound has weakened against the Indian currency since the start of May. Nevertheless, the pair remains inside a broader horizontal channel that formed at the end of March.
Both the British and Indian economies are facing unprecedented challenges amid the COVID pandemic that forced the government to implement drastic lockdown measures. Entire sectors have been shut down, causing a surge in unemployment and a collapse in consumption.
The UK is trying to gradually ease some of these measures, but market participants are confused about the reopening of the economy. Prime Minister Boris Johnson announced the updates on Sunday but warned yesterday that the country experienced the most dangerous point in the fight against the coronavirus. He told the parliament:
“Our journey has reached the most perilous moment where a wrong move could be disastrous. So at this stage, we can go no further than to announce the first careful modification of our measures.”
The government released guidance on how companies could start the gradual reopening of the economy. The PM encouraged those who work from home to continue to do so if possible. If there is no other way to carry out the job, they can go to work.
India’s Consumer Demand Slightly Up
In India, the Times of India reported that the country was experiencing the first signs of an increase in consumer demand, as the government is cautiously easing measures in the green zones.
A recent survey conducted by Bain & Company and Price suggested an increase in online shopping.
Bain & Company partner Nikhil Prasad Ojha said that the survey pointed to a declining sentiment all through April. In the first week of May, the green and orange zones showed some revival of sentiment and consumer demand. The green and orange zones, which reported fewer coronavirus cases than the red zones, account for over 80% of the country.