- The GBP/INR pair is on track for its biggest weekly gain since mid-December
- Indian rupee facing pressure as sentiment shifts
- India third phase of COVID vaccination launched yesterday
- NFP expected to rise to 647k
The Pound Indian Rupee (GBP/INR) exchange rate is extending its gains to post its largest weekly rise since mid-December. The GBP to INR pair was seen trading on Thursday within a trading range of 100.77 and 101.38. At 08:00 UTC, GBP/INR trades up +0.08% at 101.41.
Indian Rupee has lost its 2021 gains against the British Pound and year-to-date it’s down 1.3%. The Indian Rupee has come under renewed selling pressure across the board following the biggest spike in new COVID-19 cases since October 2020. New COVID-19 cases were soaring in India, which launched the third phase of its vaccination program to people older than 45.
In terms of risk events, investors are eyeing the Non-Farm Payroll numbers. According to the U.S. Bureau of Labor Statistics (BLS), the unemployment rate stands at 6.2% and is expected to inch lower to 6.0%. At the same time, the total nonfarm payroll employment is expected to rise by 647k versus 379k previous reading.
Meanwhile, in the UK the lockdown restriction is gradually eased as new COVID cases have fallen dramatically. The GBP was supported on news that the UK economy is expanding at a faster pace than expected. This along with the renewed selling pressure in the Indian Rupee might continue to support the GBP/INR ahead of the NFP release.