Buy, Sell Or Transfer At The Best Rates In India

GBP to INR Forecast for the Year 2020:

GBP to INR traded in a very wide 83.30-95.37 band this calendar year as both the currencies were volatile in their own right. As commented upon above, the rupee firmed up towards the beginning of the new financial year against the US dollar, touching the year’s high of 68.29/30.

This was also the period when sterling was under pressure because of the Brexit issue and that helped the rupee to gain ground against sterling. But as sterling surged after the victory of the ruling party in the December general elections, touching a high of 1.3515 against the dollar, the rupee fell sharply to a low of 95.37.

Nearly just after that as the UK PM fixed a deadline for the trade negotiations to be over by 31st Dec 2020, a time frame which looked very difficult to achieve, failing which UK will exit EU even without a deal, sterling fell-back sharply as fears of a no-deal Brexit and consequent mayhem in the UK economy rose, helping rupee to recover to its current level around 92.50-70.

With both currencies likely to be equally volatile in 2020, It is expected that GBP/INR would again trade in a wide 83.50-95.50 band. In case, there is an agreement on trade signed on or before 31st Dec 2020, sterling will surge higher and some pressure building up on rupee can be seen, and another possible move towards 95.35-95.50 can not be denied.

On the other hand, if the UK exits with no-deal, sterling will drop sharply towards 1.25 and rupee could gain towards the 83.50 level. A tighter band for GBP to INR next year could be 87.00-95.00 as any major slide of sterling might be capped by the UK central bank.

History of British Pound

The Pound Sterling is the official currency of the UK, Jersey, Guernsey, the Isle of Man, South Georgia and the South Sandwich Island, the British Antarctic Territory, and Tristan da Cunha. The pound is a very common name for the British currency and some people call it Sterling as well. GBP is the 3rd most traded currency in the world after USD and Euro.

It is also the 3rd highest reserve currency as well, about 4%. £ is the symbol of the currency. The symbol of Pound comes from medieval Latin. The Roman words libra, solidus, and denarius (£sd) refer to pounds, shillings and pence in the British pre-decimal currency system and the black-letter “L” was the abbreviation for libra, the basic Roman unit of weight.

Click Here To Know More About British Pound

First Use of Pound

The first use of Pound as currency was in Anglo-Saxon England. 1 GBP was equal to 240 silver pennies or one pound weight of solver. It went through multiple changes and eventually became the currency of modern Britain. Here is how to pound was divided:

4 farthings¹ = 1 Penny

12 Pence = 1 shilling

20 shillings = 1 Pound

The pound sterling was introduced in the rule of King Offa of Mercia in the 7th century. In 1663, silver was replaced by Gold.  The Bank of England was founded in 1694, followed by the Bank of Scotland a year later. Both began to issue paper money. 

British Pound was used and circulated throughout the British Empire.  Several colonies and dominions adopted the pound as their own currency. These included Australia, Barbados, British West Africa, Cyprus, Fiji, British India, the Irish Free State, Jamaica, New Zealand, South Africa and Southern Rhodesia.

History of 1 GBP to INR

Dollar and Rupee were never equal, nor in 1947, neither in any other century. When India got independence in 1947, India’s currency was pegged to Pound. The exchange rate was a shilling and six-pence for a rupee and when you convert it, it works out to be around Rs. 13.33/Pound Sterling. 

So at the time of India’s independence, 1 GBP to INR was equal to 13.33 Indian Rupees. One Pound in 1947 was equal to 4.03 US Dollars and comparatively, 1 USD to INR in 1947 was equal to Rs 3.30.

Since Rupee is pegged to the US Dollar, any changes or devaluation of GBP did not have any effect on Indian Rupee.

British Pound saw devaluation in 1949 and from 4.03 US Dollars equal to 1 Pound, it became 2.80/USD. Because India at that time was still part of the Sterling area, hence Rupee saw a devaluation too. So 1 USD to INR in 1949 was equal to Rs 4.76 and 1 GBP to INR in 1949 was equal to 13.30 Rupees approximately. Indian Rupee saw a further devaluation in 1966 and 1 USD to INR was equal to 7.50 and 1 GBP to INR in 1966 was 21 Rupees.

1 GBP to INR in 1947 till 2018

Here is the value of 1 GBP to INR from 1947 till 2019.

As of December 2019, 1 GBP to INR is equal to 88.73

Source: xe, http://fx.sauder.ubc.ca/etc/USDpages.pdf