- Pound (GBP) underpinned by reopening optimism
- UK manufacturing PMI beat forecasts
- Indian Rupee (INR) boosted by growing vaccine programme
- Indian equities push higher
The Pound Indian Rupee (GBP/INR) exchange rate is extending losses for a second session. The pair tanked -1.1% lower on Monday settling at 102.16 towards the low of the day. At 08:45 UTC, GBP/INR trades -0.2% at 101.91.
The Pound traded lower versus the Rupee on Monday, however, was well supported versus its major peers as investors focus on the reopening of the British economy. Over 20 million adults in the UK now have had a first does of the covid vaccine. The number of new daily infections declined to just 5455 on Monday, whilst the number of deaths declined to 104.
Ministers confirmed that England’s reopening plan remains on track despite six reported cases of the Brazilian covid variant. Although concerns linger over the new variant.
Data on Monday revealed that the UK manufacturing sector grew at a faster than expected rate in February despite covid restrictions. The manufacturing PMI recorded 55.1 in February ahead of the initial 54.9 reading and up from 54.1 in January.
The UK economic calendar is quiet today. Investors will look towards the Chancellor’s Spring Budget on Wednesday where investors will be watching carefully to see how supportive Chancellor Rishi Sunak will be and whether he will start raising taxes in order to plug the huge whole in public finances.
The Indian Rupee surged higher in the previous session amid upbeat manufacturing PMI data and as the covid vaccine drive picked up.
Boosting sentiment for domestic stocks and the Rupee alike was news that Prime Minister Narenda Modi was administered the first does of a home grown covid vaccine, kicking off the country’s wider vaccination drive.
Domestic equities powered higher with the Nifty 50 and the Sensex both extending gains from the previous session. Both indices gained 1.5% in the previous session.
Oil prices are on the decline. West Texas Intermediate trades -1% below $60 ahead of the OPEC meeting on Thursday. Given the recent rally in the price of oil expectations are growing the OPEC+ group with ease output cuts.
There is no high impacting data from India today. Investors await tomorrow’s service sector PMI.