If you are a Non-Resident Indian living in the UK and sending money to your loved ones in India, you will need to convert your funds from the Great Britain Pound to Indian Rupees. You may also need to convert funds when travelling to India for a vacation. In such cases, knowing the best time to convert your funds from GBP to INR is crucial.
The exchange rate of GBP to INR is affected by multiple factors and can move up and down over time. Hence, tracking it can help you find the best time to transfer money from the UK to India.
Factors affecting exchange rates
Whether you want to convert 1 GBP to INR or 1 Euro to Rupee, you need to know the exchange rates. These rates keep fluctuating and are influenced by multiple factors. A few of these include the following:
- Inflation
If a country consistently has low inflation, its currency value typically rises. On the other hand, higher inflation rates result in currencies depreciating in value.
- Current account deficient
If a country has a current account deficit, it means the country is spending more than it earns. Since its foreign currency earnings via export are not enough, it will need to borrow money from overseas to pay for the purchases. This rise in demand for foreign currency reduces the exchange rate of the country.
- Interest rates
The Pound to Rupee conversion rate is also affected by changes in the interest rates. Lenders can earn more money if a country has a high-interest rate. This attracts foreign capital that is looking to earn at higher rates. Consequently, the country’s foreign exchange rate rises, and its currency becomes stronger.
Need for tracking rates
Tracking currency exchange rates can offer multiple benefits:
- Let’s you stay up to date on the factors affecting currency rates. This could help you make informed decisions about when to transfer money.
- Gives you a better idea of how much your money transfers will cost. This way, you can budget accordingly.
- Helps you get the best currency conversion deal and prevents you from paying more when transferring money.
- Enables you to make the most of your money.
Best time for conversion
The best time to convert 1 GBP to INR and transfer money to your loved ones in India is when the GBP is at its strongest. This way, you will get more Indian Rupees for your funds. Hence, keep tracking and determine when the GBP is at its strongest to make the most of your money. You can start monitoring about one month before your scheduled transfer. This might help you get the best conversion rate when converting your funds from GBP to INR.
Conclusion
Now that you know the factors affecting exchange rates and the best time to convert, keep track of the conversion rates before converting GBP to INR.
