GBP / INR maintains its bullish stance on Thursday, after jumping around 0.90% yesterday. As of this writing, one pound sterling buys 99.927 Indian rupees, up 0.40% at 08:10 UTC. The price has already passed 100.00 earlier today and has been very close to the top level update for over four years.
The pound is boosted by renewed optimism about Brexit. Sources from the European Union and the UK told media a trade deal was imminent.
UK Prime Minister Boris Johnson is likely to announce the deal as early as tonight, as last-minute talks have resulted in a fisheries deal and a level playing field. Thus, the Brexit saga is about to end with a happy ending after nine months of complicated negotiations.
British and European officials worked until Wednesday evening to put the final notes on the legal text. The agreement will maintain trade in goods duty free between the two parties.
European Commission spokesperson Eric Mamer tweeted at midnight:
“Work on Brexit will continue through the night. At this point, all Brexit-watchers are recommended to get some sleep. We hope it will be an early start tomorrow morning. “
UK battles with more COVID strains
The pound rally is capped by concerns surrounding the rapid spread of the coronavirus. The UK reported another record for daily cases yesterday. Additionally, markets are worried about the new COVID strain confirmed this weekend and a third COVID variant from South Africa, which is believed to be the most contagious of all.
The good news is that Moderna’s vaccine may be effective against these strains. The company will perform tests to confirm this. Moderna said on Wednesday:
“We have previously tested sera from animals and humans vaccinated with the Moderna COVID-19 vaccine against a number of previous variants of the SARS-CoV-2 virus that have emerged since the first outbreak of the pandemic and we have found that our vaccine was just as effective.“
RBI Says Economic Recovery Beats Expectations
Meanwhile, the Reserve Bank of India (RBI) said India’s economy is recovering at a faster pace than most forecasts, as economic activities continue to accelerate amid a downturn. the number of COVID cases.
The RBI monthly bulletin for December highlighted more evidence showing the economy was rebounding from the coronavirus downturn. The bank said:
“Since the assessment presented in last month’s article, more evidence has been provided to show that the Indian economy is pulling out of the deep abyss of COVID-19 and recovering at a rate that exceeds most forecasts.
Economic conditions improved thanks to an increase in manufacturing activity and agriculture.