- Indian Rupee (INR) supported on Tuesday
- OECD raised global growth forecast
- Pound (GBP) supported by vaccine development, BRC sales
- No high impacting UK data until Friday
The Pound Indian Rupee (GBP/INR) exchange rate is moving marginally lower on Wednesday, extending losses for a second day. The pair settled -0.3% lower at 101.09 in the previous session near the low of the day. At 06:45 UTC, GBP/INR trades -0.05% at 101.04.
Better than forecast mid-tier data from the British Retail Consortium failed to lift the Pound versus the Rupee. The data revealed that retail sales ticked higher in February. Retail sales on a like for like basis rose 9.5% compared to February 2020. On a total basis sales increased 1%, above the 3 month and the 12 month average.
Hopes are rising that a strong vaccine rollout programme means that the UK will be able to stick to its reopening plan which started on Monday.
Nearly 22.6 million first does covid vaccines have now been administered. The number of new daily cases remains depressed at 5,766 whilst deaths recorded were 231.
Looking out across the rest of the week, the UK economic calendar remains quiet until Friday. The last day of the week sees the release of UK GDP monthly and manufacturing and industrial production.
The Indian Rupee outperformed in the previous day in a risk on trading session helped in part by an upward revision to global growth.
The OECD has strengthened it forecast for global economic growth this year, citing the on going success of the covid vaccine rollout and the huge stimulus package which is set to be signed off by President Biden early next week.
The OECD now expects the global economy to expanded by 5.6% this year and by 4% in the coming year. This is up from a forecast of 4.2% in made in December for 2021 and 3.7% for 2022.
The Indian economic calendar is quiet until Friday which sees the release of inflation data, manufacturing and industrial production and the usually weekly foreign exchange reserves.