GBP/INR Forecast: RBI Intervention Supports Strengthening Rupee
The Pound Sterling to Rupee exchange rate (GBP/INR) held steady at 128.24 on Thursday, despite edging 0.1% higher on the day. The Indian Rupee's resilience is attributed to Reserve Bank of India intervention and a decline in oil prices. MUFG expects the Rupee to strengthen during the second half of 2026, forecasting USD/INR at 94.00 by the third quarter.
The bank's forecast assumes GBP/USD remains unchanged, which would place the implied cross-rate range for GBP/INR between 126.60 and 128.00. However, this is not a direct MUFG forecast for GBP/INR.
ANZ remains cautious over the currency's near-term prospects, citing relatively low Indian rates making the INR easier to short during adverse risk events. The RBI has pledged to continue curbing excessive volatility and preventing disorderly movements in the Rupee.