As the UK economy failed to make any significant gains in the immediate aftermath of the crisis, the pound continued to decline in the coming years, falling to a nine-year low of Rs67.15 by May 2010. The pound held relatively steady at a value of roughly Rs70 for the next year through July 2011.
After this point, the pound has rapidly regained value against the rupee. The British economy began to see solid improvement in 2011 and 2012, despite continued uncertainty over high public debt levels. Nonetheless, the UK managed to escape much of the stagnation seen in the eurozone, which was weighed down by drastically different performances among its various economies. The GBP exchange rate remained above Rs85 in the second half of 2012.
As the UK recovered, India was hit by a shared crisis among emerging economies. The US Federal Reserve Board (Fed), announced in May 2013 that it planned to begin tapering its purchases of sovereign bonds - a programme known as “quantitative easing” that had helped to buoy emerging markets throughout the worst of the global economic downturn. As investors began to turn their attention to the US and the UK, capital fled from riskier markets such as India, Brazil, Turkey and Indonesia - causes these countries’ currencies to plummet.
The pound’s value shot up more than 20% in the next five months, from Rs83.65 in May 2013 to Rs100.96 in September - passing the symbolic 100-rupee mark for the first time in the history of this currency pair. The pound rose to an all-time high of Rs102.55 in February 2014, and its value held at or above Rs100 until September. The pound’s value dropped slightly to Rs94.36 in February 2015 on the back of proposed economic reforms from India’s new government. However, analysts expect the pound to continue to grow against most major currencies in 2015, keeping the GBP to INR exchange rate heavily weighted in its favour.