Rupee Stability Boosts GBP/INR amid RBI Liquidity Actions

The Reserve Bank of India (RBI) has reduced India's banking system liquidity surplus by more than half, from ₹11.16 trillion to ₹4.92 trillion, using bond sales, foreign exchange swaps, and targeted rupee defence measures. This significant action has tightened domestic liquidity and directly supported rupee stability against foreign currencies.

The RBI's interventions in the FX market and a hawkish tilt by the Bank of England have preserved range-bound conditions in the GBP/INR pair. Additionally, lower crude prices and RBI dollar sales via state-run banks have contributed to recent rupee gains against the US dollar.

The Pound Sterling vs Indian Rupee (GBP/INR) is currently trading at ₹126.876, below its key moving averages, suggesting a continuation of recent short-term weakness. Technical indicators, including the MACD and ADX, continue to register sell signals, indicating oversold conditions.