Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.
Pound to INR Hits An All Time High: What Does This Mean for You?
The Pound-INR exchange rate hit a lifetime high reaching 107.74 INR as on July 13, 2023. This has implications for businesses & individuals who remit money from the UK to India.
The Pound to INR exchange rate has soared in recent months, reaching a lifetime high of 107.74 INR per Pound on 13th July 2023. This significant development has piqued the interest of NRIs regularly remitting money to India. In this blog post, let’s delve into the reasons behind this surge and how you, as a remitter, should make the most of this situation with Vance's offerings.
Pound to INR at Lifetime High
The Pound to INR exchange rate has jumped almost 8% since the January 2023
Data as on 16th July 2023, Source: Google Finance
There are a number of factors that have contributed to the recent surge in the Pound to INR exchange rate. These include:
The Bank of England weighing heavier than the Reserve Bank of India: The BoE has raised rates five times since December 2022, while the RBI has only raised rates once. In an even more recent update, the Bank of England indicated plans to raise their rates again in the coming months. Higher interest rates in the UK have made the Pound a more attractive investment. This is because higher interest rates mean that investors earn more money by investing in Pound-denominated assets. As a result, there has been an increased demand for the Pound, consequently leading to an increase in the Pound to INR exchange rate. Additionally, higher interest rates typically attract more foreign capital, strengthening the local currency.
The shrink of the Indian Rupee: The Indian Rupee has weakened by almost staggering 8% since the start of 2023 against the Pound (till July 2023). This may be due to a number of factors related to anticipation of rise in inflation and concerns about the economic parameters such as current account deficit, the trade deficit, the oil price.
Pound as a Safe Haven Currency: Yes, the Pound is often viewed as a safe haven currency. This means that in the times of global economic uncertainty, investors gravitate towards it to protect their assets from fluctuating market conditions. But it's more than just protection. As investors flock to acquire Pounds, the demand for it also intensifies, consequently taking its value to new heights. But what does this mean for you? If you're sending money to India from the UK, a stronger Pound results in more Rupees per transfer. In the current climate, the Pound's position as a safe haven currency could be advantageous for you.
Market Dynamics and Its Implication: When the Pound to INR exchange rate broke the key level of Rs. 100 per pound in January 2023, it was a significant, historical milestone. This indicates the Pound's growing strength against the INR. Since then, it has continued to climb, reaching 107.74 recently.
What does this mean? Essentially, it's like a signal to investors and market watchers that the Pound is in demand. When a currency consistently breaks such levels, it's often perceived as strong and likely to continue its upward trajectory. This, in turn, fuels more demand, as people want to hold or invest in a currency they expect to remain strong.
As a result of these factors, the Pound Sterling has continued to rise against the INR in recent months. On July 13, 2023, the exchange rate was 1 Pound = 107.74 INR, an all time high till date.
Pound to INR forecast: Where will the Pound to INR Exchange Rate Go?
According to financial analysts and market predictions, the Pound to INR rate is expected to continue its upward trend in the near future. WalletInvestor, for instance, predicts a five-year forecast rate of 115.159. The latest forecast from DollarRupee also expects the GBP to INR exchange rate to continue its upward trend in the coming weeks and months.
It is important to note that these are just forecasts, and the actual exchange rate could go up or down. The factors that could affect the exchange rate include:
Economic Growth Impact: Typically, the strength of a currency is closely tied to the health of its country's economy. If the UK economy is growing at a faster pace compared to the Indian economy, it generally suggests more investment is flowing into the UK. This increased investment demand can boost the value of the Pound. This means your Pounds could convert into more INR, maximizing the value of the money you send to India.
The war in Ukraine: War makes the global economy shaky. In the face of uncertainty, investors often shy away from risking their funds in emerging markets, like the Indian currency, INR. Instead, they move their investments to safer options like the UK Pound. This shift can resultantly increase the value of Pound against the INR — a trend often referred to as "flight to safety."
The global economic outlook: The global economic outlook is another factor that could affect the exchange rate. This can impact demand for exports from India, prompting cautious investor behavior. If investors become more cautious, they may start to sell their investments in emerging markets, such as India. This can lead to capital outflows, which can put downward pressure on the value of INR.
Please note that these are forecasts and actual rates can vary due to a multitude of factors. It's always a good idea to stay updated with the latest rates and market news. With Vance, you can ensure you're getting the best possible value for your money with our real-time transfers and competitive rates.
How to Make the Most of the High Pound to INR Rate
With a strong Pound, sending money to India becomes even more beneficial, as it translates into a higher INR. Vance capitalizes on this opportunity by offering in various ways:
Send money to India at Google Rates: With Vance, rest assured that you'll send money to India at Google's matching rates, guaranteeing a live exchange rate for your Pound. Say goodbye to hidden charges or extra forex fees, and experience complete transparency throughout the process.
Flat fee of £3 only: Regardless of the amount you send, each transfer happens at a flat fee of only £3. This means the more you send, the more you save. With every transaction through Vance, you can save up to approximately £25.
24X7 Customer Support: Vance has set up a round-the-clock dedicated customer support system that’s unparalleled. No matter what the query, you can reach out to the support team and be sure to get a resolution in no time.
For the Indians of the world. By Indians: Vance app comes all the way from India. With their HQ located in Bengaluru, India, Vance is well on its way to serve the Indians all over the globe.
Conclusion:
The recent rise of the Pound presents a unique opportunity for those sending money to India. By understanding the factors driving this trend and leveraging the services offered by Vance, you can ensure your money goes further. Don't miss out on this opportunity to get more for your money. Start your transfer with Vance today.
Frequently Asked Questions (FAQs):
Q1.Why has the Pound to INR exchange rate reached an all-time high?
The rate has surged due to factors like the Bank of England raising interest rates more frequently than the Reserve Bank of India, strong UK economic indicators, and market dynamics, among others.
Q2. What does a higher Pound to INR rate mean for someone in the UK sending money to India?
A higher rate means that for every Pound sent to India, the recipient will receive more Rupees. This offers a favorable condition for remittance.
Q3. How has the US dollar influenced the Pound's strength against the INR?
The US dollar's strengthening, propelled by the Federal Reserve's monetary policies, has enhanced the value of the Pound relative to the INR.
Q4.What were the Pound to INR rates in the past?
Historically, the rates have seen fluctuations due to economic, geopolitical, and market factors. The recent high of 107.70 INR per Pound is the highest since March 1985.
Q5. What are the predictions for the Pound to INR rate in the future?
Financial analysts anticipate that the rate might continue its upward trend. However, these are just forecasts, and actual rates can vary based on multiple factors.
Q6. How do interest rates influence the Pound to INR exchange rate?
Generally, when a country's central bank raises interest rates, it can attract more foreign capital, leading to a strengthening of its currency. The BoE's frequent rate hikes have contributed to the Pound's rise against the INR.
Q7.How might the war in Ukraine impact the Pound to INR rate?
The outcome and ongoing nature of the conflict in Ukraine could have economic repercussions, potentially leading to the INR's depreciation against the Pound.
Q8. How does Vance offer better value for money transfers to India?
Vance provides real-time transfers, competitive Google rates, transparent comparisons to competitors, and flat fee-based transfers, ensuring users get the best value.
Q9. What is the difference between Google rates and other rates for currency conversion?
Google rates are some of the most competitive and up-to-date rates available. Vance's use of Google rates ensures users receive a favorable exchange rate when transferring money.
Q10.Why should I choose Vance over other money transfer services?
Vance offers transparent and competitive rates, real-time transfers, and flat fee-based transfers, making it a cost-effective and efficient choice for remittances to India.
Aayush is a strategic growth marketer with over 6 years of experience working in the US and European markets for various financial services companies. He has a proven track record of success in helping businesses grow, increase revenue, and improve marketing strategies.
%20(1).png)
