Exchange Rate Calculator

The exchange rate between the British Pound (GBP) and the Indian Rupee (INR) has exhibited notable fluctuations over the past few months, influenced by various economic factors and market sentiments. This report provides an analysis of the recent trends, underlying causes, and future projections for the GBP/INR currency pair.

Recent Trends in GBP/INR Exchange Rate

As of May 3, 2025, the GBP/INR exchange rate stands at approximately ₹112.47 per £1. Over the past six months, the exchange rate has experienced both highs and lows:

• Highs and Lows: The highest recorded rate was ₹113.05 on March 12, 2025, while the lowest was ₹105.27 on January 10, 2025.

• Average Rate: During this period, the average exchange rate was approximately ₹108.82.

These fluctuations indicate a general strengthening of the GBP against the INR, with a notable increase of about 5.16% in 2025.

Factors Influencing the Exchange Rate

Several factors have contributed to the observed movements in the GBP/INR exchange rate:

1. Economic Indicators: Key economic metrics such as GDP growth, inflation rates, and interest rates in both the UK and India significantly impact currency valuations. For instance, higher interest rates in the UK can attract foreign investment, increasing demand for GBP and thereby strengthening its value against the INR.

2. Geopolitical Events: Political stability, trade agreements, and international relations influence investor confidence. Events such as Brexit developments or changes in India's trade policies can lead to volatility in the exchange rate.

3. Central Bank Policies: Decisions by the Bank of England and the Reserve Bank of India regarding monetary policies, including interest rate adjustments and quantitative easing measures, directly affect currency strength.

4. Market Sentiment: Global economic conditions, risk appetite among investors, and speculative activities also play a role in currency fluctuations.

Forecasts and Projections

Looking ahead, various forecasts provide insights into the potential trajectory of the GBP/INR exchange rate:

• Short-Term Forecasts: Some analysts predict a decline in the GBP/INR rate over the next three months, with projections suggesting a decrease to around ₹107.10, approximately 4.73% lower than the current rate.

• Medium-Term Forecasts: Other projections indicate a potential increase, with the exchange rate reaching up to ₹114.88 in the coming months.

• Long-Term Forecasts: By the end of 2025, the exchange rate is expected to average around ₹113.94, with a range between ₹113.37 and ₹114.51.

It's important to note that these forecasts are subject to change based on evolving economic conditions and unforeseen events.

Conclusion

The GBP/INR exchange rate has shown significant variability over the past few months, influenced by a complex interplay of economic indicators, geopolitical events, central bank policies, and market sentiment. While some forecasts suggest a potential decline in the short term, others anticipate a gradual increase over the medium to long term. Stakeholders should remain vigilant and consider these factors when making decisions related to this currency pair.