However, as the construction sector accounts for less than 10% of the UK’s total economic output, Pound losses were limited.
That being said, the GBP/INR exchange rate was almost 0.3% softer on Wednesday ahead of the release of the UK Markit Services PMI.
Pound Sterling losses were occasioned overnight as the British Retail Consortium’s (BRC) shop price index disappointed expectations and the currency continued to trend lower against the Rupee even as India’s Services PMI fell flat.
The HSBC Services Index dropped from 51.6 to 50.0 in October – taking the measure right to the line separating growth from contraction.
An increase to 52.6 had been anticipated.
In a statement issued with the data, Economic Researcher Frederic Neumann observed; ‘Service sector activity was unchanged in October since growth in some sectors was offset by contraction in others […] On the positive side, business confidence rose to the strongest in three months, with the hospitality sector being the most upbeat about the outlook. The revival of reforms post recent state elections, if sustained, should lift growth on a broad basis.’
The GBP/INR exchange rate fell to a low of 97.7530
USD/INR Exchange Rate Advances after Midterm Elections
Yesterday the US Dollar to Indian Rupee (USD/INR) exchange rate softened after data showed a widening in the US trade deficit.
The shortfall increased from 40.0 billion US Dollars to 43.2 billion US Dollars.
US factory orders figures were also disappointing, registering a -0.6% month-on-month decline in September.
However, the US Dollar staged a rebound as the US midterm elections saw Democrats lose control of the Senate. The Republican victory solidifies the party’s position and reduces the odds of policy conflicts.
The USD/INR exchange rate achieved a high of 61.4250.
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