Exchange Rate Calculator

The exchange rate between the Indian Rupee (INR) and the British Pound Sterling (GBP) is a critical metric for businesses, investors, and individuals engaged in trade, investment, or remittances between India and the United Kingdom. Over the past few months, this exchange rate has exhibited notable fluctuations, influenced by various economic and political factors. This report provides an analysis of the recent trends, underlying influences, and future projections of the INR/GBP exchange rate.

Recent Trends in INR/GBP Exchange Rate

Fluctuations Over the Past Six Months

From January to June 2025, the INR/GBP exchange rate has experienced significant volatility. In January 2025, the rate was approximately 105.19 INR per GBP, marking the lowest point in this period. By June 26, 2025, the rate had risen to 117.53 INR per GBP, the highest in the six-month span. This represents an appreciation of the GBP against the INR by approximately 11.7% over this period. (exchangerates.org.uk)

Short-Term Movements

In the short term, the exchange rate has shown an upward trend. For instance, between June 24 and July 2, 2025, the INR/GBP rate increased from 0.0085 to 0.0086, indicating a gain of 1.18%. (exchangerates.org.uk)

Factors Influencing the Exchange Rate

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

Economic Indicators

• Inflation Rates: A higher inflation rate in India compared to the UK can lead to a depreciation of the INR against the GBP.

• Interest Rates: The differential between the Reserve Bank of India's (RBI) and the Bank of England's interest rates influences investment flows, affecting the exchange rate.

• GDP Growth: Robust economic growth in India can attract foreign investment, strengthening the INR.

Political Stability and Events

Political events, such as elections, policy changes, and international relations, can lead to uncertainty, causing fluctuations in exchange rates. For instance, the Brexit referendum in 2016 led to a significant depreciation of the GBP. (blythdaily.co.uk)

Market Speculation

Traders' perceptions and speculative activities can cause short-term movements in exchange rates. Expectations of future economic performance or political events can lead to speculative trading, impacting the INR/GBP rate.

Future Projections

Analysts have provided forecasts for the INR/GBP exchange rate for the upcoming months:

• September 2025: The exchange rate is expected to reach 0.0087, a 1.16% increase from the current rate of 0.0086.

• December 2025: The rate is projected to be 0.0086.

• June 2026: The exchange rate is anticipated to be 0.0084. (exchangerates.org.uk)

These projections suggest a slight strengthening of the INR against the GBP over the next year.

Conclusion

The INR/GBP exchange rate has exhibited significant fluctuations over the past six months, influenced by economic indicators, political events, and market speculation. While short-term trends indicate a strengthening of the GBP against the INR, future projections suggest a gradual appreciation of the INR. Stakeholders should monitor these factors closely to make informed decisions regarding trade, investment, and remittances between India and the United Kingdom.