- Indian Rupee (INR) drops as covid cases surge
- New Delhi goes into lockdown
- Pound (GBP) rises on upbeat outlook
- No UK data due today unemployment figures due tomorrow
The Pound Indian Rupee (GBP/INR) exchange rate is bounding higher at the start of the week, extending gains from the previous week. The pair gained 0.64% across last week and settled on Friday at 103.07 towards the high of the week. This was the third consecutive winning week. At 07:45 UTC, GBP/INR trades +0.7% at 103.80
The Pound has been supported by reopening optimism as the UK took further steps last week to ease lockdown restrictions. All non-essential retail and outdoors hospitality have been re-opened. However, much of this optimism has now already been priced in.
Lingering Brexit concern particularly surrounding northern Ireland, in addition to some political risk surrounding the Scottish elections in May could be softening demand for the Pound
Today the UK economic calendar is quiet. However, there is plenty of data due to be released across the coming week. On Tuesday, UK unemployment data is set to be released. This is to be followed by inflation numbers on Wednesday. Then Friday then sees the release of UK retail sales, plus manufacturing and service sector PMI data. These figures will give investors a better idea as to how the UK economy is performing as it reopens.
The Rupee is trading sharply lower amid rising concerns over the resurgence of covid in India. Cases continue to surge in India, with new daily cases reaching a record 273,810 on Monday.
Despite hospitals struggling with shortages of beds oxygen supplies, political rallies continues ahead of state elections.
The financial hub Hong Kong announced that it will suspend flights to and from India amid the sharp rise in cases. The capital of India, New Delhi will go into a strict lockdown for 6 days. Concerns over the impact of the covid on the economy are weighing on demand for the Rupee, amid fears that it could derail the economic recovery.