US Dollar vs the £

    Hey guys,

    I know this seems relatively stupid but I'll ask anyway!

    What are your thoughts regarding the pound vs the dollar? It seems to be dropping to the lowest I've ever seen it.

    I'm off to New York in March & I'm thinking of buying my spending money now. Although I don't want to buy at $1.30 & then it get better!!

    I know there's no way of actually knowing but I just wondered what other peoples thoughts were, do you think it'll get better or worse?



    i'd wait, if its still bad later, i would consider getting most of it when your out there.

    I would wait. it seems to be going up and down atm

    Would it be worth changing in the US? Just a thought. Dont know if that might give a better rate

    it will fluctuate depending on where the bad news is.

    $$ is strong at the moment due to positive sentiment about obama in the USA and him sorting their problems out vs the UK banks still having a hard time which is driving sterling lower. At some point in the next couple of months the news/sentiment will swing the other way and there will be a reversal of some kind. probably only temporary, but keep your eyes open on the rate each day and set you sights realistically. I could easily see it in the $1.40's again.

    Well, that extremely annoying BBC financial editor, Robert Peston, seemed to be suggesting that Sterling had still got some way to fall when I listened to him recently. As the current situation worsens, he explained, investors will "take flight" from the Pound as it's a relatively small currency. This also explains why the US $ is relatively protected from such flights - it's sheer size makes it investable even when the USA is in recession.
    ---- But hey, who knows? It's always a gamble as you've said. Personally though, I'd probably buy now rather than later. But the gamble is yours


    I could easily see it in the $1.40's again.

    as if by magic...... $1.41345…stm

    whats this saturdays lottery numbers?

    I'd say wait, but then again the more people that do buy now the better the market becomes, swings and roundabouts.

    Original Poster

    Oooh, I don't know what to do!! Think I'll end up getting some soon, tomorrow maybe.

    How would I go about buying in the States? How does that work? Do you get a better deal over there?

    I really am clueless when it comes to this kind of stuff. I understand exchange rates perfectly fine but it's everything else that cmones along with it :?

    Thanks for the replies folks :thumbsup:

    buying in the states is just like buying over here there are bureau de change over there, but the rates are the same given the market fluctuation, however like over here most places charge you comission to buy back currancy so you might have to pay that charge so it could work out worse.

    however, you can just use a cash machine over there they will automatically covert it, however there may well be a charge associated to that as well.

    I'd be a rich man if I knew ... According to the Reuters terminal this morning, one Pound currently buys you 1.41 Dollars. If you want to enter into a "swap" contract whereby you agree to buy dollars in 10 years time, the rate you would get is 1.27. This suggests a depreciation of the Pound against the dollar over the very long run.. However the way these swap rates are computed is through interest rate differentials - at the moment US interest rates are much lower than UK interest rates. In practice tons of other factors come into play and depending on who you ask, the forecast will be different. Many people have suggested that the UK government is spending beyong its means with all those bank buyouts (even more so than the US compared to the size of the economy) and that as a result, the pound risks becoming a sort of monkey currency...

    If you prefer being safe than sorry, it's probably not a bad idea to change at least part (say half) of your total requirement into Dollars already today. Also dont change your cash it at your local Thomas Cook or at Natwest - they will rape you. Look around some of the smaller shops. For example in London, a competitive place to change cash is near Victoria station (there are loads of exchange shops - one of the best is the one near the entrance of Victoria tube - there is usually a queue at that particular store for that reason)

    just as a pointer if anyone is interested,

    uk banks are rallying on the stock market at the moment and sterling is now at 1.43. it might be a good time to tie in soon as these things never last.
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