- Indian Rupee (INR) gained strengthens
- Calls for a full lockdown grow
- Pound (GBP) weighs up reopening optimism versus Brexit nerves
- UK manufacturing PMI data due.
The Pound Indian Rupee (GBP/INR) exchange rate is slipping lower on Tuesday paring gains from the previous session. The pair settled +0.2% higher at 102.63 on Monday. At 08:30 GBP/INR trades -0.2% at 102.42.
The Pound continues to struggle against a mix of supportive and unsupportive factors. Encouraging covid numbers offer support to Sterling. However, Brexit nerves linger hurting demand for the Pound.
UK new daily covid infections have dropped to 1,671 over the past 24 hours, whilst there was just one covid death. Prime Minister Boris Johnson said on Monday that social distancing rules could be scrapped in June as planned. May 17th is the next key date of the government’s unlocking plan when restrictions on some foreign travel could be eased but not totally lifted.
Brexit barriers are in focus as Northern Ireland’s largest party prepares for a leadership election after the leader Arlene Foster stepped down. Divisive issues surrounding the post Brexit trade barriers will almost certainly be as central debate in the leadership contest.
UK manufacturing PMI numbers will be in focus later today. Analysts are expecting the 60.7 preliminary April reading to be confirmed.
India moves a step closer to complete lockdown after opposition leader Rahul Gandhi called for tight restrictions to be put in place. His calls come as covid cases continue to surge in the country and the total number of infections topped 20 million. India is the second country after the US to breach this grim milestone.
India has taken just four months to add 10 million new covid cases provoking some fears that if tough action isn’t taken numbers will continue spiraling out of control.
Prime Minister Narendra Modi is reluctant to impose another lockdown after the steep economic fallout from the initial lockdown last year.
Offering some hope though, covid cases in some regions appeared to be closing in on the peak. Experts are predicting Wednesday will be the peak.