Pound vs Rupee – Trade the GBP/INR via CFD
When it comes to currency trading, the currency pair of Pound vs. Rupee is one of the oldest. In fact, it’s been closely tied together for hundreds of years from the moment Great Britain colonized India.
Forex traders prefer the GBP/INK pair for the long history between their countries and a unique position on the currency market. Individual investors are always looking for new assets to diversify their trading portfolios and strengthen their financial strategies. That’s why this pair is often used for enhancing of Forex tactics. However, like any other currency pair, it also brings some risks because the currency market is extremely volatile and unpredictable.
The GBP or the Pound sterling has always been exchanged on a gold standard. As the INR or the Indian Rupee was closely associated with the Pound, it was also tied to the gold standard even though it was traditionally a silver coin. Later, it was pegged against the US Dollar, but that only lasted until 1971.
Pound versus Rupee
There are many factors that influence the foreign exchange rate in the Asian subcontinent. One of the key factors that impacts the Pound vs. Rupee exchange rate is the lack of trade restrictions between India and the UK. This allows both currencies to adjust themselves freely.
At the same time, the inflation rate can have a significant impact on the Rupee’s value when compared to the Pound. The interest rates can also have an impact on the Rupee because it has a direct impact on the foreign capital invested in the country.
Currency traders should be aware that the Pound vs. Rupee rate has experienced an uptrend in recent years. This was closely tied to the UK coming out of the Great Recession and India bearing the brunt of global and domestic economic pressures.
However, social, economic, and political events like Brexit have the potential to create high volatility. At the same time, India’s monsoon season can also potentially disrupt the Rupee.
Trade with Pound vs. Rupee currency pair today
In the UK, the rapidly falling inflation rate can potentially strengthen the Pound and help close the gaps when it comes to wage growth. At the same time, relieving financial pressures can also result in a rebound in consumer spending this year.
With a large portion of Britain's growth expected to come from spending, it could also mean a stronger GDP this year. However, all this is just a speculation as investors in the UK can retreat in inflation if they think the Bank of England won’t raise its interest rates over the next ten months.
So, Pound vs. Rupee currency traders may also have a strong Indian Rupee going forward while uncertainty continues to hover over Brexit negotiations.
Trading the GBP/INR Pair at r1investing
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