£ to $ Exchange Rate – Buy Now or in 2 months?
I’m going to Florida on July 12th 2008. Please can anyone give me their opinion as to the direction the Pound/Dollar rate will move over the next 2 months, with reasons, so that I can decide when to get my US $. I will need abour £2000 worth, so buying at the right time will make a big impact on our spending power.
I would appreciate advice and the basic theories that affect the rate if anyone has a bit of knowledge about this.
Thanks in advance.
When I boked the flights in December the rate was over 2$ to the £, but dropped to a low of 1.94. After a brief rise again, it now seems to be on a steady decline throughout April to the current low of 1.95.
As the Bank of England didn’t reduce interest rates this week, do you think the price will level off at 1.95? and has the US interest rate hit rock bottom?
Interest rates are the main cause of currency changes. As the Americans have already dropped theirs a lot, the dollar has weakened, however, the UK is also expected to follow suit. This should weaken the £ against the $, so buy now.
