Contents
- 1 Why pound rate is decreasing in India?
- 2 What is the best GBP to INR rate?
- 3 Will pound rate go down in India?
Why pound rate is decreasing in India?
Despite better-than-expected Indian manufacturing output, the Indian Rupee (INR) exchange rates softened versus most of its major peers. – While the British pound has fared well against most rivals today, the Indian Rupee has been a notable exception.
- Unfortunately for the Pound, the Rupee has been bolstered considerably by a failed OPEC meeting and the subsequent drop in the price of crude oil.
- Oil prices have remained under pressure on Thursday thanks to expectations that OPEC will fail to agree any moves to curb its levels of production.
- As India is one of the world’s major oil importers this has naturally seen the Rupee (INR) strengthen against rivals, despite wider market malaise.
The British pound under-performed against the Rupee on Wednesday, due to poll gains seen for the ‘Leave’ side. Although last week brought major GBP gains from ‘Remain’-supportive EU Referendum polls, this week has brought the opposite for the UK. For the most part, the Pound has tanked due to polls putting the ‘Out’ vote as a more likely option.
Demand for the Rupee (INR) declined markedly following a report that Reserve Bank of India (RBI) Governor Raghuram Rajan does not want to remain in his post past the end of his term in September. This exacerbated investors’ disinclination to buy into the Rupee, allowing the GBP/INR exchange rate to remain on an uptrend in spite of ‘Brexit’ concerns.
With the latest set of EU referendum opinion polls giving the edge to those voting to leave the European Union, the UK Pound softened from last-weeks highs, 
Weak British manufacturing growth also weighed on demand for Sterling amid concerns that tepid sectoral output will drag on economic growth. Meanwhile, the combination of trader profit taking and dampened market sentiment caused the Indian Rupee to decline versus most of its currency rivals. 
Here are the latest FX rates for your reference: On Wednesday the Pound to British Pound exchange rate (GBP/GBP) converts at 1 The GBP to GBP exchange rate converts at 1 today. At time of writing the pound to euro exchange rate is quoted at 1.163. Today finds the pound to us dollar spot exchange rate priced at 1.249.
Why is GBP dropping?
Pound Sterling exchange rates fell widely in midweek trade after respondents to S&P Global surveys cited high interest rates and other headwinds for an August softening of business conditions in the services industry underpinning the domestic economy with possible implications for Bank of England (BoE) interest rate
Is GBP expected to rise?
British Pound (GBP) Forecast – Fundamental Outlook – As anticipated, better inflation data allowed the Bank of England to return to a 25 basis-point interest rate hike in August. That comes after a 50bp boost that was more forceful in June. Although there are numerous allusions to recent shocks in wage growth and the upside risks linked with inflation, it is evident that policymakers don’t want to appear complacent.
The Bank’s lack of information about what it plans to do next shouldn’t surprise traders too much. The BoE kept its forward guidance, which states that it would raise rates again if the inflation data shows “evidence of more persistent pressures.” It continues to employ the same language, which is ambiguous enough to leave a range of choices open for September and beyond.
Nevertheless, there are a few signs that suggest policy rate growth may be peaking. It’s interesting to note that the Bank now formally declares that the policy is restrictive, which appears to be a new addition to the statement. The same is true of the statement’s remark that policy must be “sufficiently restrictive for sufficiently long.” In a pinch, you might say that the Bank is setting the groundwork now for a pause later in the year, but we’re still at risk of overanalyzing.
- Although the Bank adds an optimistic bias to the results of its models, the revised predictions nevertheless anticipate inflation at (or even slightly below) goal in a few years.
- Curiously, that’s also true if Bank Rate maintains at its current level for the foreseeable future.
- Nevertheless, the Bank’s projections have been indicating below-target inflation for some time, and officials don’t seem to be overly confident in the predictions their models are currently making.
According to ING analysts, another increase is probably coming in September, but by November, analysts believe things should be looking a little better in terms of services inflation and wage growth. Energy price increases are a major factor in the former’s increase, and ONS polls indicate that the impetus on service sector enterprises to hike prices aggressively is lessening.
- Therefore, whether we see another 25bp increase in November will primarily rely on whether services inflation has failed to moderate, but for the time being, the Bank of England is forecasted to peak at 5.50% in September, said the Dutch bank.
- Thus, the market’s prediction of a top at 5.65% before the turn of the year looks credible and undoubtedly more so than it did only a few weeks ago, when investors briefly witnessed a peak Bank Rate near 6.5%.
According to currency analysts and economists at the BofA, we can expect the Bank of England (BoE) to deliver one more hike of 25bp in September (2023), a lengthy pause at 5.5%, followed by a first interest rate cut in February 2025. According to economists at Nomura, we can expect three more 25bp hikes at the BoE’s August, September, and November meetings this year, and will not see any rate cuts until the very end of 2024.
What is the best GBP to INR rate?
Best Indian rupee exchange rate
| Should arrive | Exchange rate(1 GBP → INR) | Transfer fee |
|---|---|---|
| within 1 day | 102.557 | 1.99 GBP |
| in 2-4 days | 103.146 | 20.00 GBP |
| in 1-5 days | 100.263 | 0.00 GBP |
| within 5 days | 99.8068 | 9.50 GBP |
What is the rupee forecast for 2023?
In the later part of 2023, the US Federal Reserve may decide to stop raising interest rates since there may be clear signs that inflation is moving in the direction of their target of 2%. Experts expect the rupee to trade in the range of 80-89 per dollar. The current USD/INR exchange rate is 81.52.
Why Indian currency is not increasing?
The Indian rupee on Monday opened below the 83-mark against the dollar, the lowest for the currency since October 2022 when it had dipped to a historical low of 83.26. After India became independent, one dollar could be bought at less than four rupees.
- As the country marks 76 years of freedom, the rupee has gone down by nearly 20 times.
- Devaluations, trade imbalances, budget deficits, inflation, global fuel prices, economic crises, etc.
- Made the rupee constantly depreciate against the dollar.
- The story of the rupee’s transformation is also the story of India’s transforming economy as it went through various ups and downs.
From its humble beginnings to becoming an influential player in the global financial landscape, the evolution of the Indian rupee is a testament to the nation’s economic and policy shifts and global integration. The rupee has been hovering around 82 against the US dollar.
In the past year, the Indian currency has remained volatile and has hit record lows. The depreciation can be attributed to a positive dollar and a weak tone in domestic markets. The selling pressure by foreign investors may also weigh on the rupee. However, it was not the case since the beginning of the Independent India era.
Post-independence, the rupee was pegged to the British Pound. This created a stability in trade and financial transactions. On the other hand, the arrangement restricted the country’s monetary flexibility and independence as it compelled India to rely on the pound’s strength instead of its own economic fundamentals.
- After independence, India had chosen to adopt a fixed rate currency regime.
- The rupee was pegged at 4.79 against a dollar between 1948 and 1966.1960-70s war impact The 1960s and 70s came as a period where the currency witnessed a lot of fluctuations.
- On the macroeconomic front, multiple factors including global economic instability, wide fiscal deficits and high inflation, led to a devaluation of rupee.
The food and industrial production was also affected in the 60s when India used to be a food-deficit country importing grains to feed its citizens. This issue was further escalated by the 1962 Indo-China and India-Pakistan war. The war also led to increased spending.
During that period, the Indian economy was faced with high import bills and was close to default as the foreign exchange reserves had almost dried up. All this impacted the currency negatively due to which it depreciated. The geopolitical tensions eroded rupee’s purchasing power and affected the average citizen’s livelihood.
Two consecutive wars resulted in a huge deficit on India’s budget, forcing the government to devalue the currency to from Rs.4.76 to 7.57 against the dollar. The oil crisis in the 70s strained the Indian rupee further. Rising oil prices led to trade deficits and increased demand for foreign exchange reserves.
The era of economic liberalisation The 1990s marked a turning point for the Indian economy, as it embraced liberalisation and globalisation. The currency was devalued in order to strengthen exports and attract foreign investments. In 1991, India faced a serious balance of payment crisis and was forced to sharply devalue its currency.
The country was in the grip of high inflation, low growth and the foreign reserves were not even worth enough to meet three weeks of imports. Under these situations, the currency was devalued to Rs.24.5 against a dollar. The first devaluation of the rupee of 7-9% against major currencies took place on July 1.
The second devaluation of about 11% happened on July 3. In the following years, the rupee experienced fluctuations due to global economic uncertainties, trade imbalances, and changing oil prices. The Reserve Bank of India ( RBI ) also intervened with measures to stabilise rupee, such as currency swaps and forex reserves management.
Then came the era that witnessed advancements in technology. This prompted India to introduce new banknotes with enhanced security features to check counterfeiting. Additionally, the government’s push towards a digital economy also bolstered rupee’s electronic transactions and reduced its dependence on physical currency. 
Rupee in the 21st century The 21st century saw rupee’s steady march towards internationalisation. It became one of the top 15 most-traded currencies globally. Bilateral currency swap agreements with other nations further cemented its prominence on the global stage.
However, 2008 witnessed a huge setback for currencies worldwide. The global financial crisis was a worldwide crisis which had a cascading effect on the Indian economy. This was the most severe crisis post the Great Depression. The rupee depreciated significantly against major currencies, reflecting the interconnectedness of economies and the vulnerability of emerging markets during a crisis.
Recession in 2010 also had a similar impact on the economy, hence, the currency dipped further. 
The government however tried and India successfully recovered from the recession. Despite its successes, the rupee encountered challenges such as inflation, trade deficits, oil prices and geopolitical uncertainties. These factors occasionally led to depreciation, causing concerns for both policymakers and citizens.
In 2020, the world encountered an unprecedented crisis due to Covid-19. The pandemic unleashed challenges on global economies, and India was no exception. The Indian currency faced volatility as foreign investments retreated. However, the nation’s resilience and proactive measures helped it recover faster than anticipated.
To address challenges and enhance stability, India has embraced financial reforms. The introduction of currency futures and options provided avenues for risk management. As India aspires to become a $5 trillion economy, the rupee’s trajectory remains closely tied to the nation’s economic growth.
- In today’s time, India’s inflation has been a cause of concern for the policymakers and investors along with consumers.
- Inflation, often influenced by factors like food prices and fuel costs, poses challenges for the rupee’s value.
- Maintaining price stability while promoting economic growth requires a delicate balance of monetary policy.
A consecutive hike in policy rates also impacted the value of rupee. Hence, it can be said that from recession to inflation, the value of money has depreciated considerably. India is trying to turn the rupee into a global currency, a move aimed at reducing dependence on the US dollar and increasing India’s global heft.
The RBI has allowed more than a dozen banks to settle trades in rupees with 18 countries since last year, India’s recent agreement with the United Arab Emirates to trade in local currencies is a major step towards internationalising the rupee, after Russia last year agreed to sell crude oil to India in rupees after the West imposed sanctions on settlement in dollars.
Bangladesh and India too have launched trade transaction in rupees.
Will the GBP continue to fall?
Analysts believe the GBP/USD pair fall in 2023. It means that the US dollar will appreciate against the pound in the forex market.
Is the GBP expected to drop?
The British Pound is expected to trade at 1.22 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.15 in 12 months time. – The GBPUSD spot exchange rate specifies how much one currency, the GBP, is currently worth in terms of the other, the USD.
| Actual | Previous | Highest | Lowest | Dates | Unit | Frequency | ||
|---|---|---|---|---|---|---|---|---|
| 1.25 | 1.25 | 2.86 | 1.03 | 1957 – 2023 | Daily |
What is the strongest currency in the world?
1. Kuwaiti dinar. Known as the strongest currency in the world, the Kuwaiti dinar or KWD was introduced in 1960 and was initially equivalent to one pound sterling.
Will GBP rise in 2023?
HSBC Predicted Pound Sterling’s 2023 Rise against Euro and Dollar, But With Target Hit What Comes Next? 
Image © Adobe Stock Very few institutional analysts were able to predict the 2023 rally in the British Pound, with most stubbornly wedded to a seemingly perma-bear stance to the UK currency and its economy. But strategists at HSBC went against the consensus in late 2023 and forecast a rise in the value of the currency.
So, where does the team that got it right see the Pound moving over the coming weeks and months? “In November 2022 we turned bullish on GBP-USD, when the pair was trading around 1.15, arguing a softening USD and a more resilient than expected UK economy would push Cable around 10% higher,” says Dominic Bunning, Head of European FX Research at HSBC.
HSBC then upgraded its view on the Pound in January 2023, extending a forecast for Pound-Dollar to 1.30. “That level has now been hit, albeit much earlier than we initially expected. This begs the question: what next?” queries Bunning.
- In a research update to clients, Bunning says his team are not looking to fight the Pound’s strength at this stage, but they are cautious that the lion’s share of the move higher has potentially passed.
- Above: GBP/USD forecasts by institutional analysts as per the Bloomberg poll on January 03 reveals analysts were not expecting GBP strength.
“In the near-term there is room for soft USD momentum to persist as the Fed looks set to end its rate hike cycle in July. Meanwhile, the BoE looks set to stay hawkish as inflation has been more persistent, the labour market remains tight and the positive consumer impact of falling energy prices will continue to provide a tailwind through the summer,” he says.
- The assessment comes after the Pound to Dollar exchange in the wake of soft U.S CPI and PPI inflation releases and a better-than-expected UK GDP release.
- The Pound to Euro exchange rate meanwhile but recaptured the 1.17 level following 0.1% in May, which was better than the -0.3% reading the market was expecting.
HSBC reckons the Pound’s momentum may start to wane in the fourth quarter, which leaves the door open to further strength over the summer. “By no means are we turning bearish on GBP,” says Bunning. “But we would be wary of chasing more powerful moves higher in the currency without a significant improvement in the domestic story.” Inflation in the UK remains elevated relative to the other major economies but should fall as lower energy prices feed into the data.
- The Pound meanwhile looks richly valued, with HSBC observing Sterling’s Real Effective Exchange rate is close to 10% overvalued versus a 5 year average and over 5% above its 10 year average.
- “The further above equilibrium that GBP trades, the more positive the news needs to be to cause further upside,” says Bunning.
- “We would be wary of chasing more powerful moves higher in the currency without a significant improvement in the domestic story,” he concludes.
At the start of 2022 HSBC told clients they were buyers of the Dollar against the Euro and British Pound, a strategy that would have delivered a 6% gain against the former and a 10.7% gain against the latter.
- But for 2023 investors as a reversion was likely to take place and the two European currencies deliver gains against the Dollar.
- “Buy EUR and GBP versus the USD,” read a year-ahead strategy note that sets out a range of thematic views that might play out.
- “We believe the global backdrop has shifted and valuations are now appealing enough to look to buy both currencies against the greenback, whose upward momentum has run out of steam,” says Paul Mackel, Global Head of FX Research at HSBC.
: HSBC Predicted Pound Sterling’s 2023 Rise against Euro and Dollar, But With Target Hit What Comes Next?
What is the forecast for 1 GBP to INR?
For today i.e. September 06th, Wed 2023, 1 British Pound is equal to 104.3108 Indian Rupees. Today’s expected low – high GBP to INR forecast rates is INR 103.8036 – 105.0453. respectively. Change in GBP to INR rate from previous day is +0.49%.
Is GBP getting stronger?
When Liz Truss and Kwasi Kwarteng’s tax-cutting mini-budget triggered a UK debt crisis in autumn 2022, the pound plummeted to almost parity with the US dollar. In 2023 the UK has endured weak growth, falling productivity and high inflation, yet the pound has been the strongest performing currency among the G10 leading economies.
How much is 1 pound in rupees in india 2023?
Exchange Rate History For Converting Pounds (GBP) to Rupees (INR) – The last 14 days currency values.
| Tue 12/09/23 | 12th September 2023 | 1 GBP = 102.7636 INR |
| Mon 11/09/23 | 11th September 2023 | 1 GBP = 103.6371 INR |
| Sun 10/09/23 | 10th September 2023 | 1 GBP = 103.6876 INR |
| Sat 09/09/23 | 9th September 2023 | 1 GBP = 103.5156 INR |
| Fri 08/09/23 | 8th September 2023 | 1 GBP = 103.5239 INR |
| Thu 07/09/23 | 7th September 2023 | 1 GBP = 103.8215 INR |
| Wed 06/09/23 | 6th September 2023 | 1 GBP = 104.1119 INR |
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What is the pound to pak rupee prediction for 2023?
Best exchange rate: 387.6051 PKR on 30 Aug 2023. Average exchange rate in 2023: 345.5054 PKR. Worst exchange rate: 270.5254 PKR on 05 Jan 2023.
What is the forecast for GBP to INR 2025?
GBP to INR forecast 2025 – Wallet Investor’s GBP to INR forecast 2025 is bullish. According to the firm, the exotic currency pair will hit a new record high of 114.50 rupees as at the beginning of 2025. It will rally further to 117.89 by June and reach 119.60 by the end of the year. 
GBP to INR forecast Nonetheless, it is important to incorporate further research rather than trading solely based on analysts’ predictions. Indeed, one of the principles of successful trading is to stick to the adopted trading strategies regardless of how tempting the forecast is.
What is the most stable currency 2023?
What is the most stable currency in the world? – As of April 2023, the most stable currency globally is the Swiss franc, thanks to the strong economy of Switzerland and its stable political environment.
What currency to hold in 2023?
List of 10 Strongest Currencies in the World 2023
| Rank | Currency (Currency code) | Exchange rate |
|---|---|---|
| 1 | Kuwaiti dinar (KWD) | 1 KWD = 3.26 USD |
| 2 | Bahraini Dinar (BHD) | 1 BHD = 2.65 USD |
| 3 | Omani rial (OMR) | 1 OMR = 2.60 USD |
| 4 | Jordanian dinar (JOD) | 1 JOD = 1.41 USD |
Which currency is the best to invest in 2023?
Swiss Franc – Currency code – CHF, Swiss Franc rates: 1 CHF = 1.08 USD (Swiss Franc to US Dollar).1 CHF = 1.02 EUR (Swiss Franc to Euro). One of the safest currencies to invest in, besides the US Dollar and Euro, is the Swiss Franc. Stable market economy, high GDP, low unemployment rate, country’s focus on supporting its national currency, an extremely advanced banking system – all these factors make the Swiss franc an attractive investment opportunity.
Why is Indian currency so weak?
7. Current account deficit – The rising current account deficit, possibly due to the severe problems faced by the Euro Zone, is a notable reason why the Indian rupee is depreciating. The Euro Zone has been historically one of India’s major trading partners. The rising current account deficit has depleted our foreign exchange reserve and thus led to a fall in the value of the Indian Rupee. 
Send Money Quickly Send money abroad to your loved ones in Just few clicks with our Foreign Exchange services SEND MONEY There should be regular trade activities to safeguard the current accounts of the country, and reduce the deficits as much as possible.
By doing this, the value of rupee against the US dollar will have certain chances to become better. It all depends on the way the government would act regarding this issue and make some good decisions for the benefit. Suggested Read : Forex Cards Benefits & Uses These are the prominent reasons why the Indian rupee is falling against the U.S.
Dollar. It is important for all frequent travellers to be aware of these factors and make a wise decision when converting from USD to INR without incurring a heavy loss. However, on the other end, the debate of INR vs USD will keep escalating depending on the issues that will be coming up in near future.
Is India’s currency falling?
Rupee at risk of falling to record low on surging US yields 
A cashier checks Indian rupee notes inside a room at a fuel station in Ahmedabad, India, September 20, 2018. REUTERS/Amit Dave/File Photo MUMBAI, Aug 17 (Reuters) – The Indian rupee on Thursday is expected to open just shy of its record low in the wake of a further rise in U.S yields on bets that interest rates are likely to say higher for longer.
Non-deliverable forwards indicate the rupee will open at around 83.20-83.22 to the U.S. dollar compared with 82.95 in the previous session. The rupee’s record low is 83.29, reached in October 2022. India forex and money markets were off on Tuesday and Wednesday. On both these days, the 1-month USD/INR NDF had climbed above 82.50, implying a spot rate that was higher than 83.29.
The Reserve Bank of India possibly intervened in offshore NDF to defend the rupee. There was “a very high probability” that RBI would “make itself known” at open to keep rupee from making a lifetime low, a forex trader at a bank said. A decline below 83.30 for the rupee “would trigger a new round” of dollar buying and “you can expect a sizeable move”, he said.
- The 10-year U.S.
- Yield on Wednesday closed at the highest level since 2008, lifting the dollar index to near 103.50.
- Resilient U.S.
- Economic data and worries over supply have been among the reasons cited by analysts for the jump in U.S. yields.
- The minutes of the U.S.
- Federal Reserve July meeting out Wednesday showed that policymakers remain highly attentive to inflation risk, providing another reason to investors to avoid U.S.
bonds. Most Fed officials “continued to see significant upside risks to inflation which could require further tightening of monetary policy”, the minutes showed. “The Fed kept the door open for the second hike it pencilled in June at the remaining three meetings of 2023,” DBS Research said in a note.
KEY INDICATORS:** One-month non-deliverable rupee forward at 83.28; onshore one-month forward premium at 8 paisa** USD/INR NSE August futures settled at 83.1375 on Monday** USD/INR August forward premium at 4.0 paise** Dollar index up at 103.52
** Brent crude futures up 0.2% at $83.6 per barrel ** Ten-year U.S. note yield at 4.29% ** As per NSDL data, foreign investors sold a net $306.2mln worth of Indian shares on Aug.11 ** NSDL data shows foreign investors bought a net $152.4mln worth of Indian bonds on Aug.11 Reporting by Nimesh Vora; Editing by Nivedita Bhattacharjee Our Standards: : Rupee at risk of falling to record low on surging US yields
Which country has the weakest currency?
Iranian Rial (IRR) Currently, the Iranian Rial is considered the world’s least valuable currency. This is the result of factors like political unrest in the country. The Iran-Iraq war and the nuclear program also played a huge part.
Will pound rate go down in India?
GBP/INR rate equal to 104.358 at 2023-09-04 (today’s range: 104.078 – 104.338). Based on our forecasts, a long-term increase is expected, the Forex rate prognosis for 2028-09-02 is 113.428. With a 5-year investment, the revenue is expected to be around +8.69%. Your current $100 investment may be up to $108.69 in 2028.
Why is rupee depreciating in India?
Reasons for the Indian Rupee’s present depreciation –
Due to greater imports, India’s trade deficit grew to an all-time high of over $23 billion in November. This expanding trade gap is caused by the increase in oil costs. Policy differences between the Federal Reserve and the RBI: the strengthening of the US currency in reaction to the Federal Reserve’s low-interest rates and predictions of improved US economic development (the US central bank). In order to increase its reserves and be ready for any future turbulence, the Reserve Bank of India has been continuously purchasing US dollars. Due to a capital exodus from stocks, the benchmark S&P BSE Sensex Index has decreased by almost 10% from its all-time high set in October 2021. Currently, worries about the omicron virus type are unsettling the world markets. The conflict between Russia and Ukraine, rising crude oil prices, and tightening global financial conditions are some of the primary worldwide causes that have caused the Indian rupee to decline versus the US dollar. Significant demand for dollars from oil importers due to the high price of crude oil and worries about the widening trade deficit has also been major drivers of the sharp decline in the value of the Indian rupee. The increase in interest rates by the U.S. Federal Reserve (central bank), the European conflict, and worries about China’s economic development as a result of the Covid-19 rise all contributed to a sell-off in the global equity markets, which in turn caused the rupee to weaken. High crude prices and the slump in equities markets are both contributing to the dollar’s negative outflow. The RBI’s efforts to tighten the monetary policy in response to growing inflation have also resulted in devaluation.
How much is 1 pound in rupees in india 2023?
Exchange Rate History For Converting Pounds (GBP) to Rupees (INR) – The last 14 days currency values.
| Tue 12/09/23 | 12th September 2023 | 1 GBP = 102.7636 INR |
| Mon 11/09/23 | 11th September 2023 | 1 GBP = 103.6371 INR |
| Sun 10/09/23 | 10th September 2023 | 1 GBP = 103.6876 INR |
| Sat 09/09/23 | 9th September 2023 | 1 GBP = 103.5156 INR |
| Fri 08/09/23 | 8th September 2023 | 1 GBP = 103.5239 INR |
| Thu 07/09/23 | 7th September 2023 | 1 GBP = 103.8215 INR |
| Wed 06/09/23 | 6th September 2023 | 1 GBP = 104.1119 INR |
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Why is the pound falling against the Euro?
Will the pound rise back against the Euro? 
- The pound sterling to Euro rate fell yesterday as interest rate expectations for the Eurozone increased.
- Christine Lagarde, indicated yesterday that stubborn inflation was likely to see the Eurozone continue to raise interest rates ahead.
- We have written many times about how a higher interest rate leads to a stronger currency.
The pound has hit 1.17 and higher in recent weeks mainly because of higher interest rate expectations for the UK. But, the main trigger for this, high inflation, is not a condition solely affecting the UK. The European Central Bank in their latest policy discussions have not ruled out further interest rate hikes, hence the stronger Euro.