GBP/INR maintains the bullish stance, as the pair continues to rally. At the time of writing, the pound buys 101.869 Indian rupees, which is relatively at the same level as the open price. Yesterday, the pair pulled back in the morning but then came stronger and closed higher, exceeding the psychological level of 102.000 for the first time since December 2015.
The pound has been boosted by the optimism surrounding the UK’s vaccination program, which is implemented at the fastest pace in Europe. Besides this, investors are not avoiding the assets considered to be problematic during the Brexit chaos.
So far, the pound has been the best-performing G10 currency this year, gaining 3% against the US dollar.
Most economists argue that the sterling has more room for growth, as UK Prime Minister Boris Johnson unveiled a cautious plan to get the country out of the national lockdown. Also, the government pledged to vaccinate all adults by July 31. The new conditions might help businesses maintain their staff.
UK Unemployment Rate Up to 5.1 in Q4 2020
Earlier today, the Office for National Statistics (ONS) reported that Britain’s jobless rate increased to 5.1% in the last quarter of 2020, which is the highest since the beginning of 2016. Still, the unemployment rate is in line with analysts’ expectations and much lower than it would have been without the jobs support scheme. The programme is Britain’s most expensive support measure to reduce the impact of the pandemic. It will cost a total of 70 billion pounds by April 30. Finance minister Rishi Sunak might extend the scheme beyond the expiration date for the sectors that suffered the most.
The ONS also reported that the number of workers on company payrolls last month rose by 83,000 from December, which is the highest increase since January 2015.
As for India, Asia’s third-largest economy is expected to demonstrate a V-shaped recovery this year, as the number of COVID cases and deaths continues to decline. Still, a spike in infections in Maharashtra is prompting concerns.
Yesterday, Japanese brokerage Nomura said that its index tracking business activity in India rose to 99.3 for the week ended February 21, which is almost back to pre-pandemic levels.