- Indian Rupee (INR) rises despite covid crisis deepening
- Domestic equities tumble
- Pound (GBP) slips as politics come into focus
- BoE & Scottish elections next week
The Pound Indian Rupee (GBP/INR) exchange rate is extending losses for a second straight day on Friday. The pair settled -0.5% on Thursday at 103.37 towards the low of the day. At 08:45 UTC, GBP/INR trades -0.55% at 103.11. The pair is on track to book a weekly loss of -0.8% after four straight weeks of gains.
The Rupee is moving higher on Friday despite the covid crisis escalating and domestic equities falling sharply lower.
India reported 386,452 new daily infections on Friday – a new record tally whilst deaths jumped to 3498 according to the health ministry data. Medical experts believe the numbers could actually be significantly higher.
Several India states have now run out of covid vaccines as the world’s second mots populous country heads deeper into crisis. Only around 9% of the population has sop far received a vaccine.
Investors are fretting over the impact that the crisis will have on India’s economy. Those nerves sent domestic equities sharply lower on Friday. The Sensex is heading into the close down around 1% as is the Nifty 50.
Foreign exchange reserve data is due to be released by the Reserve Bank of India later today.
The Pound is trading under pressure versus its major peers. There has been little in the way of high impacting UK data this week leaving investors to focus on sentiment and politics.
There is plenty of sleazy news being reported on Prime Minister Boris Johnson. For now, this isn’t having a huge impact on the Pound. If it worsens the Pound come under further pressure.
Looking ahead next week brings the Bank of England monetary policy meeting as well as Scottish elections.
These elections will be closely eyed. A win by the nationalist party could boost the possibility of the Scottish nationalist party calling and winning a vote of independence from the United Kingdom.