View Full Version : OUCH! Recent exchange rate trend
The last 10 days or so in particular has witnessed quite a significant strenghtening of the $ against the £ and whist i appreciate this is a very imprecise science ,for anyone who has a better grasp and insight into Economics than myself, what would be the likely effect of the revaluation of Chinese currency against the dollar with regard to the exchange rate of £ to dollar.
I suspect that there may well be a few of us in the situation of having to make some form of hefty payment in dollars shortly without having forward bought due to the recent 'consensus' that the uk pound would hit 2 dollars and beyond.
Views of likely near term movement very much appreciated [confused]
This is another example of how I live in Truman world!
Ever since i've booked my hols many months ago the dollar has been high and rising. Now its nearly time to pay for the villa, car and disney tickets, guess what?[msnmad][msnmad][msnmad]
E. Cosgrove
21-05-2005, 17:02
If you booked your car hire from this site Rodney you could have secured your price with just a £25 deposit![msnoo]
andrewmckay5
21-05-2005, 17:18
Anything above $1-80 is still a fantastic rate. Many owners on here would have bought when the £ was below
$1-50. Also for the amount of money changed for holiday purposes and the good value in Florida anyway I don't think anyone should feel they are losing out if they change at $1-80 instead of $1-90.
If you were to change up £2500 for a 14 day holiday for 4 people, the 10 cents difference betwwen $1-90 and $1-80 would equate to less than $4-50per person per day.
Personally having lived in the states when it was $1-20 to the £( and relying on converting £s for the year) i think anything above $1-60 is a great rate.
andrew
chrizzy100
21-05-2005, 17:31
I need the pound to full like a stone for my trip to the UK....so I'm lighting all my candle to make that happen.....evil grin.......:D:D[}:)]
For once I may have got it right. I have bought all my travellers cheques & park tickets, have also paid for the villa.
Mo Green
21-05-2005, 20:14
<blockquote id="quote" class="ffs">quote:Originally posted by andrewmckay5
Anything above $1-80 is still a fantastic rate. Many owners on here would have bought when the £ was below
$1-50. [/quote]
I agree Andrew - if only it had been that good when we had ours built[msnmad]
1.79 on Travelex today which is still quite good in my view[msnwink]
It was $1.4 when we bought our villa so I agree with Andrew, anything above $1.6 is a bonus ;)
Steve and Dawn
21-05-2005, 23:10
Give it a month or two and it will come back up..... we had this just after Xmas it started to fall and then rose again.... he says hopefully..[msnsmile2][msntongue]
Steve & Dawn
I too today looked at Travelex and thought should I, or should I wait a little longer got 2 months left - hope Steve and Dawn are right and it goes back up!!!
The trend for the strengthening of the dollar against sterling is more than likely to continue over the next few months. This is due to the continuing rise of US interest rates set against the fall of UK interest rates. If you are about to spend a lot of money ( if you are buying a villa for example) it may be wise to forward fix an exchange rate asap. When you are dealing with 6 figure purchases every cent becomes a grand! You can get deals that allow you to fwd fix for a window of 3 months or alternatively you can set a date, which will give you a slightly better rate. Or you could just gamble with market forces. The reports in the FT last Feb. that talked of sterling hitting $2+ are unlikely to be fulfilled but who knows what might happen. I get a morning market briefing every day telling me the state of play. If you would like more details,Tybear then PM me.
Jo-Anne
I have a small financial deal of my own coming up in the next 2 weeks, suffice to say I need the dollar to strengthen and my share price to rise. That way I will maximise my profits [msnsmile2]
flyrr100
22-05-2005, 08:59
Sorry to be a spoilsport. But we in the USA are looking for a trend torwards a better dollar. Around 1.30 would be good.
I need a UK fix!
Robert5988
22-05-2005, 12:12
This has be said many times.
The best financial experts in the City, with access to every bit of data, have absolutely no idea which way the £UK/$US exchange rate will go; if they knew for certain they would make a fortune.
The probability(repeat only probability) of any future trend, is already taken into account in the current exchange rate.
The advice to fix a forward rate for a very large purchase is agreed; but at the end of the day it is still a gamble.
I have just bought at 1.91 (2 weeks ago) so am happy as larry!
But like some above said when we were looking 1 year ago it was at 1.69. It is like trying to guess the lottery numbers i'm afraid.
David and Debra Waters
23-05-2005, 02:38
we don't have luck with the lottery numbers either.
[laugh]
Warren Buffet,the most famous investor in the States is a "bull on sterling versus the US dollar.This may well continue despite movements in the past few weeks" he comments alluding to the £'s 5% slide in the past few weeks against the dollar.
A combination of this viewpoint and a probable relaxation of the renminbi peg by the Chinese would appear to point to a weaker dollar so I am going to let events run their natural course for as long as I possibly can. .Thanks for everyones' input.[zzz]
Well we shall see what happens. I know it is frustrating when it goes up and down and we don't have any power over it. But just think about all those poor people who transfered a few years ago.
ujpest doza
26-05-2005, 18:15
The last 3 times i have been to Florida the Exchange was :
2002 - $1.30/£1.00
2004 - $1.75/£1.00
2005 - $1.86/£1.00
On all 3 visits i still found Florida to be much cheaper than the UK for Food, Drink, Petrol and Clothes.
Magical Dreams
26-05-2005, 18:19
Business Rate is hovering around $1.82 again today!
So Tourist rate will be a few cents lower.
[msnsad]