British Currency Pounding At Six Month Low Ahead Of BoE; GBPINR Extends Decline

Published on Sep 21, 2023 15:46

The British currency is pounding at a six month low on Thursday ahead of the much awaited BoE monetary policy decision due today. An unexpected fall in UK consumer prices yesterday is adding expectations that the central bank may hit the pause button on interest rates soon. Inflation in UK decelerated to 6.7% in August, down from July`s 6.8% and defying expectations of a rise to 7%, marking its lowest level since February 2022. Meanwhile, London`s benchmark FTSE 100 closed with strong gains on Wednesday with investors in an optimistic mood after data showed that UK inflation unexpectedly slowed, as markets awaited central bank meetings at both the Federal Reserve and Bank of England. By the close, the FTSE 100 was up 1% at 7,737 - a fresh four-month high, having not closed above this level since 23 May. GBPUSD hit lowest levels seen since March this year and dropped below $1.23 mark. Currently, the pair is quoting down half a percent on the day at $1.2290. Meanwhile, on the NSE, GBPINR September futures are trading at 102.14, down 0.65% on the day.