- Indian Rupee (INR) supported vaccine rollout
- Foreign exchange reserves data due
- Pound (GBP) supported by trade developments
- No high impacting UK data
The Pound Indian Rupee (GBP/INR) exchange rate is edging higher after two straight days of losses. The pair settled -0.7% lower at 101.05 in the previous session after hitting a low of 100.96. At 06:45 UTC, GBP/INR trades +0.1% at 101.12. The pair in on track to lose 1.8% across the week snapping a four week winning streak.
The Indian Rupee has been broadly supported across the week thanks to the ramping up of the covid vaccine rollout in the country. India’s Bharat Biotech announced this week that its covid 19 vaccine has proved to be 81% effective at protecting people. This will accelerate the vaccine campaign further in India.
More than 11 million people in India have tested positive for covid a number only surpassed by the US. The Indian economy was among the hardest hit. The vaccination drive is ambitious with plans for 300 million of its 1.3 billion citizens to be vaccinated by August. So far 15 million doses have been administered. The vaccine drive will enable the economy to reopen at a faster pace
The Indian economy has pulled itself out of recession expanding a less than forecast 0.4% in the October to December quarter.
Data wise investors will look ahead to the release of the weekly foreign exchange reserves update.
The Pound has traded mixed versus its peers this week. Today its receiving a boost from upbeat trade news after the US agreed to a four-month suspension of regulatory tariffs imposed on British goods over a long running aircrafts subsidiary row.
The long running trade disagreement between the US, Europe and the UK stemmed from a row over subsidies for aviation firms Boeing and Airbus. Both sides the US and the UK have pledged to use these four months to resolve the issue.
The is no high impacting UK data to investors to focus on leaving the Pound vulnerable to sentiment.