inr-symbol-forex-performanc - INR

GBP/INR is bullish on Monday, but the pair is still trading close to the lowest level since March 27. Currently, one British pound buys 91.933 Indian rupees, up 0.31% as of 7:00 AM UTC. While this is the largest single-day gain since the start of the month, the move doesn’t necessarily point to a trend reversal, as larger timeframes still display a steep downtrend that started in mid-April at above 96.000.

Goldman Downgrades India’s GDP Outlook

The mood surrounding rupee has deteriorated after US-based banking giant Goldman Sachs said that India would experience the worst recession in its history. The investment bank cited a series of data that stress the damaging impact of the lockdown measures imposed by the government at the end of March.

India’s gross domestic product (GDP) will contract by as much as 45% in the second quarter compared to the previous quarter, down from Goldman’s prior outlook of a 20% drop. Nevertheless, the bank expects a stronger rebound of 20% in the third quarter, while forecasts for the last three months and the first quarter of next year remained at the same levels of 14% and 6.5% respectively.

Goldman economists Prachi Mishra and Andrew Tilton explained in a note that the estimates suggested that real GDP would drop by 5% in the fiscal year 2021, which is way deeper than any recession India has seen.

While India’s Finance Minister Nirmala Sitharaman announced major reforms and a rescue package worth $265 billion, the immediate impact cannot be avoided. The Goldman economists said:

There have been a series of structural reform announcements across several sectors over the past few days. These reforms are more medium-term in nature, and we therefore do not expect these to have an immediate impact on reviving growth. We will continue to monitor their implementation to gauge their effect on the medium-term outlook.”

Elsewhere, the UK is gradually easing some of the restrictive measures amid the pandemic. Still, the economy is unlikely to experience a rapid rebound, the Office for Budget Responsibility (OBR) says. Nevertheless, OBR chairman Robert Chote noted that April was probably the bottom. 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.