Sterling rates against the US Dollar have been very strong over the past few weeks and this has continued this week with the Pound reaching some of the highest levels in a year against the US currency. For anyone purchasing American property investments this is therefore great news. If you need to transfer money to the US in the future, don’t forget that you can use a forward contract to book today’s rate for a future deal. Feel free to speak to me with your queries on this.

The story against the Euro has been quite different which is unfortunate news for all of you who send money over from the UK to maintain properties in Europe or are indeed purchasing property there. Due to the fact that an interest rate rise is still expected to occur in Europe much sooner than in the UK (as soon as next month in Europe) the Euro has steadily strengthened on the Pound with us dropping down to inter-bank levels at worst of around 1.145.

This looked set to change yesterday when UK inflation levels came in soaring at 4.4 percent. This gave Sterling some renewed strength as this suggested that the inflationary pressure on the economy may force the Bank of England to raise interest rates sooner. This was quickly dampened today however when the Bank of England minutes from March were released which showed that no more members of the policy committee voted for an interest rate rise. This afternoon’s UK budget has also not helped the currency to strengthen. There has been some volatility throughout the afternoon with the Pound making further mild losses as markets digest the information included in the budget. The instant reaction suggests that despite targeted moves to promote growth in the weakest areas with measures such as scrapping the fuel duty rise and help for first time buyers, currency markets have not been encouraged enough to begin flowing of funds into Sterling.

Anyone who needs a Sterling transfer to Euros is best advised to speak to me at Currency Solutions to discuss target rates and protecting yourself from volatility. If you have Euros to bring back into Sterling, then now is a great time to book the transfer and take advantage of the rates.

For further advice or how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 20 7740 0000 or by clicking HERE to leave an enquiry.