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GBPINR-Market-Analysis

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GBPINR-Market-Analysis

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  1. GBPINR Market Analysis GBPINR surged from early April, peaking at 114.25 on April 22 due to US tariff volatility, and now hovers around 113.47, a net monthly gain of about 2.5% driven by GBPUSD strength and USDINR weakness, but remains volatile.

  2. Market Volatility and Tariff Market Volatility and Tariff Impact Impact April 2, 2025 April 2, 2025 Announcement of 10% baseline tariffs on all countries along with additional tariffs UK Tariff Status UK Tariff Status No additional tariffs were imposed on UK April 21, 2025 April 21, 2025 Dollar Index (DXY) hit multi-year lows of 97.16

  3. Investor Behavior and Bond Market Investor Behavior and Bond Market Investor Reaction Investor Reaction US 10Y Treasury Yield US 10Y Treasury Yield US 2Y Treasury Yield US 2Y Treasury Yield Nervous investors started to panic and they flocked to US bonds amidst increase uncertainty, leading to an increase in bond prices and declining bond yields which fell significantly down. Currently around 4.35% compared to 4.49% in early April Currently around 3.83% compared to 3.9% in early April

  4. Market Sentiment Improvement Tariff Negotiations US officials confirmed talks with 90 countries including the UK US-China Relations Easing of ongoing tariff wars between US and China Market Impact Improved overall market sentiments Expected Outcome Will lead to improvement in DXY

  5. Hedging Strategies for Businesses Hedging Strategies for Businesses For Exporters For Exporters For Importers For Importers A window for exporters to hedge between attractive levels of 113- 115 along with premium of 2-2.5% are quite favourable. Importers can adapt a wait and watch approach, as increase in the DXY could put some pressure on GBP. At such high GBPINR levels, a window for exporters to hedge between attractive levels of 113-115 along with premium of 2-2.5% are quite favourable. On the other hand, importers can adapt a wait and watch approach, as increase in the DXY could put some pressure on GBP.

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