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Pound Falls Again

In my last blog I described that Sterling rates against the US Dollar had been particularly strong with us reaching some of the highest levels in a year. Unfortunately for those exchanging Sterling into Dollars, this has now completely reversed. The Dollar has had a new found rally since last Friday after several policy makers in the US made public comments to suggest that an interest rate rise as well as the withdrawal of stimulus measures there being used to shore up the economy may be made sooner than expected. The US had been seen as seriously lagging behind Europe and the UK in terms of economic recovery whereas this kind of talk suggests that the gap is getting closer. If you need to make a Sterling to Dollar transfer therefore for a property investment this is a time to be very careful in terms of what may happen with exchange rates as the tide is turning. You can speak to me about options we have to help you protect your transfer from this kind of volatility.

There is more bad news for Sterling in rates against the Euro. Despite the fact that the Euro has dropped against many other major currencies due to a plethora of problems emerging in various member states, the currency is, infuriatingly for those who need make a transfer into Euros, still holding very strong against the Pound. Problems with Portuguese debt levels as well as the defeat of Angela Merkel’s party in Germany have bought a cloud of uncertainty over Europe seeing it sliding against currencies such as the Dollar. Against the Pound however, the fact that an interest rate rise is expected in Europe possibly in April, far earlier than a rise is due here, is keeping the Euro stronger.

The Pound is also weak due to the UK’s own internal problems. Dire retail figures came out last week for February which were taken quite seriously by markets. They were so low that they suggested the VAT rise might after all be having a negative effect and also caused the UK’s AAA credit rating as a nation come under potential threat.

All in all, not good news on exchange rates for those needing to make a Sterling transfer into another currency. You can speak to me about how to protect yourself from these kind of drops. If you are selling a property abroad and bringing money back to the UK of course, the exchange rates are very much in your favour.

Currency Solutions

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.

TAGS: UK Economic News, pound, Global Economic News, Germany, Financing & Mortgages, Euro, dollar, Currency,

Financing &

Fiona Parsley

Fiona Parsley

With 20 years financial experience, Fiona Parsley applies her trade with one of the UK’s leading foreign exchange specialists, Currency Solutions.

A Currency Dealer that’s highly respected and liked by her clients, Fiona provides a diligent service to keep her clients up to date with market trends and options, saving them time and money on all transactions.


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