Exchange Rate Calculator

The exchange rate between the British Pound (GBP) and the Indian Rupee (INR) has experienced notable fluctuations over the past few months. This report provides an analysis of the recent trends, factors influencing these movements, and forecasts for the near future.

Recent Trends in GBP/INR Exchange Rate

Between April and June 2025, the GBP/INR exchange rate exhibited a general upward trend. On April 7, 2025, the rate was at its lowest point of ₹109.49 per GBP. By June 26, 2025, it had reached a peak of ₹117.59 per GBP, marking an increase of approximately 7.4% over this period. The average exchange rate during these three months was around ₹114.20 per GBP. (valutafx.com)

Factors Influencing the Exchange Rate Movements

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

1. Interest Rate Differentials: The Bank of England's monetary policy decisions, particularly regarding interest rates, have a significant impact on the GBP's strength. Higher interest rates in the UK attract foreign investment, increasing demand for the GBP. Conversely, if the Reserve Bank of India raises its rates, the INR may strengthen. (moneyhop.co)

2. Economic Indicators: Economic performance indicators such as GDP growth, inflation rates, and employment figures in both the UK and India influence investor confidence and currency valuations.

3. Political Stability: Political events and stability in either country can lead to fluctuations in the exchange rate. For instance, political uncertainty in the UK may weaken the GBP, while stable governance in India can bolster the INR.

4. Global Market Sentiment: Global economic conditions, trade relations, and geopolitical events also play a role in currency movements. For example, changes in global oil prices can affect India's import costs, influencing the INR's value.

Forecasts for GBP/INR Exchange Rate

Various financial institutions and analysts have provided forecasts for the GBP/INR exchange rate for the remainder of 2025 and into 2026:

• Short-Term Forecasts:

  • For the week of June 30, 2025, the exchange rate is projected to average around ₹117.3856, with a trading range between ₹116.2118 and ₹118.5595. (midforex.com)

• Medium-Term Forecasts:

  • By September 2025, the GBP/INR exchange rate is expected to reach ₹115.42, representing a slight decrease from current levels. (exchangerates.org.uk)
  • By December 2025, the rate is forecasted to be around ₹116.18. (exchangerates.org.uk)

• Long-Term Forecasts:

  • Looking ahead to June 2026, the exchange rate is anticipated to rise to ₹118.53. (exchangerates.org.uk)
  • Some projections suggest that by the end of 2025, the GBP/INR rate could reach ₹129.90, indicating a bullish outlook for the GBP. (coincodex.com)

Implications for Stakeholders

The projected movements in the GBP/INR exchange rate have several implications:

• Importers and Exporters: Businesses engaged in trade between the UK and India should monitor these forecasts to manage currency risk effectively. Hedging strategies may be necessary to mitigate potential losses due to unfavorable exchange rate movements.

• Investors: Those investing in assets denominated in GBP or INR should consider the potential impact of exchange rate fluctuations on their returns. Diversifying portfolios and staying informed about economic indicators can aid in making informed investment decisions.

• Travelers and Remittances: Individuals planning to travel between the UK and India or sending remittances should be aware of the exchange rate trends to optimize the timing of currency exchanges.

Conclusion

The GBP/INR exchange rate has shown an upward trend in recent months, influenced by factors such as interest rate differentials, economic indicators, political stability, and global market sentiment. While short-term forecasts suggest slight fluctuations, the medium to long-term outlook indicates a potential strengthening of the GBP against the INR. Stakeholders should remain vigilant and consider these projections in their financial planning and decision-making processes.