- Indian Rupee (INR) rises after upbeat RBI comments
- Medical supplies start arriving to support India
- Pound (GBP) rises supported by reopening optimism
- No UK data today
The Pound Indian Rupee (GBP/INR) exchange rate is heading southwards on Tuesday. The pair settled on Monday approximately flat at 103.87. At 08:45 UTC, GBP/INR trades -0.3% at 103.53.
The Indian Rupee is showing some resilience at the start of the week after the Reserve Bank of India said that the Indian economy was holding up well against the resurgence of covid in the country. The RBI insisted that apart from face to face trade activity indicators were holding up well and remained resilient in March.
The comments came as Indian covid cases reached a fresh record high of 350,000 new daily infections. The country has localised lockdowns in some states in an attempt to stem the spread.
However, the RBI is optimistic that the economic recovery will continue based on recent corporate earnings and consumption data.
Supplies from other countries are starting to pour into India to help the collapsed health system. India has also brought in its armed forces to help deal with the crisis. Virologists warn that the situation could get worse before it starts to get better.
The Pound was well supported in the previous session following an upbeat report by the Bank of England’s deputy governor Bill Broadbent. Broadbent considers that the UK will see “very rapid growth over the coming quarters boosted by a rise increase in consumer spending.
According to the latest EY ITEM Club report, the UK economy will grow by 6.8% in 2021, marking the fastest pace of growth since the second world war.
The UK vaccination programme continues at a rapid pace keeping the UK on track with its reopening plan. This is raising optimism surrounding the outlook for the British economy.
There is no high impacting UK data today. However, there are plenty of UK stocks reporting their results which could impact the mood in the market.