Over the past week, Bank of England (BoE) Governor Mark Carney has expressed concern about the rising likelihood of a "no deal" Brexit, and United Kingdom officials have noted that negotiations may be headed in that direction too.
Trade developments and weakness in the Pound (GBP) caused GBP/INR to tumble from the interbank rate of 90.02 to 89.12 last week, and GBP/INR has fallen further so far this week to it's lowest level since January 2018.More news: In wake of critical book, Trump calls Omarosa 'a lowlife'
'A lot of companies can't wait for the negotiations outcome in October so a lot of course are trying to hedge against a drop in the Pound'.
A lack of notable data hasn't prevented the Pound Sterling to Indian Rupee (GBP/INR) exchange rate from falling this week, as markets continue to focus on the latest Brexit developments and jitters. Few saw the increase as a vote of confidence in the economy with so much political uncertainty ahead.
Although Ian McCafferty is an external Monetary Policy Committee member who is leaving the MPC at the end of this August, his hawkish views are well known as he was voting for a rate hike since March until the Bank of England raised the Bank rate to 0.75 percent last week delivering dovish monetary policy outlook.More news: New Zealand to ban single-use plastic bags
Against the euro, the pound has held up far better as demand for dollars has kept the euro on the back foot.
"We remain bearish on the pound in the short term until the Brexit mess is out the way and look for the currency to enter a US$1.27-1.28 range before the leaders' summit in September", said Nomura strategist Jordan Rochester. The pound has lost more than 10 percent since April and is down nearly 15 percent since the Brexit Referendum in June 2016.
The economic calendar for this week remains thin, with only low-tier data on the offering for Wednesday, and GBP traders will be turning their eyes to the UK's GDP reading due on Friday.More news: Maurizio Sarri not aiming to repeat Napoli formula at Chelsea
Nervousness over the UK's prospects of striking a deal with the European Union has sent sterling sliding in recent days, falling as low as $1.2842 today, the lowest point since August 2017. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities.
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