The Indian rupee weakened against sterling over the weekend and into yesterday even though optimism builds surrounding the current election. To be held on the 16th of May, the election polls are being led by the Bharatiya Janata Party (BJP), who are placing a major focus on reigniting Indian economic growth and eliminating corruption from the government. As a result we saw traders buy in to the rupee through the day yesterday following the release of the figures.
The Australian dollar also performed well, climbing to two-week highs following news early yesterday morning that interest rates will be held at the record low of 2.5%, but a statement following the announcement kept expectations alive that the next move will be a rate hike as the Australian economy strengthens. The news coincided with trade balance figures, which should a narrowing of the deficit. Overnight last night we had retail sales figure which came is as expected.
The Canadian dollar strengthened following better-than-forecast trade balance figures, a further sign of Canada’s strengthening economy. Building permits figures released this afternoon could provide a further boost.
Also overnight last night we had employment figures out of New Zealand which showed that unemployment constant at 6%. This was viewed positively boosting the currency against sterling.
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