GBP/INR Historical Price Charts – British Pound Price History

Last Update: January 13th, 2021

The Indian rupee is the national currency of India, which is also referred to as INR. However, the INR is usually represented with the symbol ₹. The Indian rupee (INR) derives its name from the rupiya, a silver coin first issued by Sultan Sher Shah Suri in the 16th Century. For the time being, the issuance of the currency is controlled by the Reserve Bank of India. Managing currency in India could be considered as one of the most important tasks of the Reserve Bank of India. Moreover, India’s reserve bank also plays an important part in the Development Strategy of the Government of India, issues statements, and decides on the interest rates of the country.

From a historical point of view, the new rupee sign (₹) was officially approved in 2010. D. Udaya Kumar created it, by combining the Devanagari consonant “र” (ra) and the Latin capital letter “R”, without its vertical bar (similar to the R rotunda). The first series of coins with the new rupee sign were issued on July 8, 2011. Before that, India used “₨” and “Re” as the symbols for multiple rupees and one rupee.

While talking about the coins, let me remind you that India’s coins are issued in denominations of 50 paise, one rupee, two rupees, five rupees and ten rupees.

Therefore, the paise is worth 1/100th of a rupee. Coins worth 50 paise are referred to as small coins, while coins equal to or above one rupee are known as rupee coins.

In terms of banknotes, the paper currency or banknotes in India are issued in denominations of 5, 10, 20, 50, 100, 500 and 2,000 rupees. It is worth mentioning that the denominations are printed in 15 languages on the reverse side of paper rupees. On the front, the denominations are printed in Hindi and English.

Typically, India’s banknotes are updated with new designs, including distinct differences between the old Mahatma Gandhi Series of banknotes and the new ones of the same name. The notes show various themes from India’s rich culture.

What is the GBP/INR (British Pound/ Indian Rupee)?

One currency is always quoted against the other, as the currencies are traded in pairs. Thus, the GBP/INR currency pair represents the Pound sterling trading versus the Indian rupee. In this case, the first currency (GBP) is the base, and the second (INR) is the quote currency.

Major Factors that Influence the GBP/INR Currency Pair

The value of the GBP /INR currency pair is mainly affected by geopolitical and global sentiment, like many emerging market currencies, as the foreign players have been withdrawing from the Indian equity market, which has contributed to the fall of the Indian rupee. The prevailing US-China trade situation seems to be having a domino effect on global trade, which has been affecting the Indian currency since Sep 5, 2019.

Across the pond, the INR has a strong correlation with the crude oil prices, as WTI Crude accounts for a significant portion of India’s overall imports. Thus, any rise in the price of crude oil hurts the economy. If WTI Crude Oil prices rise further, it will not only impact the stability of the rupee and the rise in stock markets. It could also produce an inflationary effect.

GBP/INR – Historical Price Charts and Data

GBP/INR – Historical Price Charts:

Current GBP/INR Price: $

Historical Data Tables:

GBP/INR Historical Price Data

Monthly Change

Factors impacting the GBP/INR Prices:

The value of an INR currency pair depends on key factors that influence the economy, such as imports and exports, employment, inflation, interest rates, trade deficit, growth rate, the performance of equity markets, foreign exchange reserves, foreign investment inflows, macroeconomic policies, banking capital, commodity prices and geopolitical conditions.

It is worth mentioning that the Income levels broadly influence the INR, through consumer spending. When incomes rise, people spend more. However, the higher demand for imported goods tends to increase the demand for foreign currencies thereby undermining the local currency.

Interest Rates:

“Higher interest rates in an economy tend to draw foreign investment, increasing the demand for and the value of the local currency . Likewise, lower interest rates tend to undermine exchange rates. By raising interest rates, the central bank can lower the demand for such goods, leading to pressure on prices.

Likewise, the RBI controls the value of the Indian rupee with different tools, including controlling its supply in the market, thereby making it cheaper or more expensive.

Let me discuss some ways by which the RBI controls the movement of the Indian rupee. The first one would be by changing interest rates, or alternatively, relaxation or tightening of rules for fund flows, tweaking the cash reserve ratio (the proportion of money banks have to keep at the central bank) and selling or buying dollars in the open market,” says Brahmbhatt of Alpari.

Crude Oil:

WTI Crude Oil prices could also be considered one of the major factors affecting the prices of the Indian rupee (INR), as crude accounts for a significant portion of India’s overall imports. Thus, the rise in the price of crude oil hurts the economy. If WTI Crude Oil prices rise further, it will not only impact the rupee’s stability and the rise in stock markets, but it may also produce an inflationary effect.

Economic Data:

The economic data, such as the Consumer Price Index (CPI), Gross Domestic Product (GDP), Trade Balance, Retail Sales, Consumer Price Index and Industrial Price Index have a great influence on USD/INR prices. This data is important if one is to understand the stock market, and especially the direction of the INR.

FOREX DEMAND

As we all know, international trade and the movement of people are increasing sharply, and no currency is accepted all over the world. Whether you go to the United States for further studies or fly to Rio for a holiday, you will have to pay for services and goods in their currency. And besides this, you have to pay in foreign exchange when shopping online from international stores.

Thus, the foreign exchange rate for converting currencies depends on the market scenario and the exchange rate being followed by the banks of the countries concerned. Floating exchange rates, or flexible exchange rates, are determined by market forces, without any active intervention by central governments. For example, due to heavy imports, the supply of the rupee may go up, and its value would fall as a result. On the contrary, when exports rise and dollar inflows are high, this tends to underpin the rupee.