Pound At Two-Week Low Against Dollar; GBPINR Fades Below 106 Mark

Published on Jul 21, 2023 14:22

GBPINR fails to hold recent rally and fades below 106 mark on Friday. The pair on the NSE futures have witnessed a declining trend this week and come off record high levels reached in the previous week. The GBPINR futures pair on the NSE are tracking weakness in the international pound that is trading lower against the dollar. Rebound in dollar index above 100 mark is seen weighing on the currencies in the basket. US data overnight showed labor market stays resilient paving way for Federal rate hikes. US benchmark 10 year treasury yields coming off lows, currently at 3.8% is also benefitting the dollar. The dollar index against a basket of currencies is hovering at 100.72, up 0.12% on the day. Meanwhile, data earlier this week showed consumer price inflation in the United Kingdom dropped to 7.9 percent in June, marking the lowest level in nearly 15-months, reducing expectation of an aggressive rate hike, depressing the currency. Core inflation, which excludes volatile items such as energy, food, alcohol, and tobacco, eased to 6.9 percent from May`s 31-year high of 7.1 percent. GBPUSD is lingering around a two week low at $1.2856. Meanwhile, on the NSE, GBPINR futures are quoting at 105.40, down 0.26% on the day.