- Pound (GBP) holds gains after 4 winning sessions
- UK to re-open as planned on April 12th
- Indian Rupee (INR) softens ahead of Wednesday’s RBI announcement
- Inflation could be revised higher
The Pound Indian Rupee (GBP/INR) exchange rate is edging mildly lower on Tuesday, snapping a 4 day winning streak. The pair settled 0.35% higher in the previous session at 101.85. At 08:45 UTC, GBP/INR trades at 101.71, towards the lower end of the daily traded range.
The Pound’s is mildly weaker versus the Rupee but remains well supported as the UK economy looks to move to the next phase of re-opening the economy.
UK Prime Minister, Boris Johnson, announced that England will move forward with the planned reopening of the economy on Monday 12th April. All shops, gyms, hairdressers and outdoor hospitality areas in England will re-open.
The number of new daily covid infections in the UK has fallen to 2,762, whilst the death toll fell to 26 according to official data release on Monday thanks to the rapid vaccine rollout programme.
The total number of first doses covid vaccine now administered is just shy of 37 million.
Today the UK health regulator will decide whether or not to restrict the use of the AstraZeneca vaccine in younger people amid concerns of rare blood clots. Should the regulator restrict the use of the vaccine, to vaccine programme could slow significantly.
There is no high impacting data today, so sentiment is like to keep driving movement.
All eyes are on the Reserve Bank of India which will meet this week to set monetary policy. The broad expectation is that the central bank will keep interest rates on hold as covid cases surge in the country. However, it could upwardly revise its inflation forecasts.
Thanks to rising commodity prices, particularly crude oil prices, inflation could well push higher. February recorded inflation at 5.03%, a three month high.
The central bank will want to remain as supportive as possible as concerns rise over the economic outlook, as covid cases reach record levels.
India reported a record 100,000 plus new daily cases on Monday, a number only topped by the US.