UAE Exchange CEO Promoth Manghat said he believes the 90 rupee to 1 pound mark will be hit either this quarter or this year
The India rupee is likely to reach an exchange rate of 90 to the British pound, possibly over the next quarter, according to UAE Exchange Group CEO Promoth Manghat.
“The British pound has gained strength over the last two days, owing to a positive outlook on the Brexit deal,” Manghat told Arabian Business. “This seems to have stopped the GBP/INR downward trend.”
As the Indian Rupee continues to weaken because of lower-than-expected inflation data released by the Reserve Bank of India, Manghat said he foresees the rupee “crossing the 90 mark against the pound this year or quarter.”
“We will be watching the exchange rate very closely as both currencies are volatile with the market reacting to global political conditions,” he added.
Manghat’s comments come one day after the rupee plunged to its lowest against the US dollar, a decline stemming from the Turkish Lira’s sharp weakening against the dollar and the subsequent effect that has had on emerging market currencies.
“On the other hand, the dollar has been gaining steadily, pegged against the basket currencies,” he said. “The sudden weakness in INR is mostly due to global risk-off. Concerns over India’s growing trade deficit and short term liabilities persists, but INR looks relatively well placed.”
Remittances to India, he added, have been “on the higher side over the past few months due to the volatility in the Indian currency and are subject to further increase, leading to remitters getting more value for every dirham they send back home.”For all the latest currencies and forex rate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.