Pound to dollar exchange rate – sterling steadies as Theresa May hints at soft Brexit and USD slips
THE POUND has slightly slipped in value against the dollar this morning — but is largely staying firm as investors hedge their bets on a soft Brexit being announced by Theresa May at a speech in Italy.
Sterling was worth $1.36, a drop of just 0.06 per cent on yesterday, following a period of decent value growth amid separate rumours of an interest rate rise expected to be announced by the Bank of England in November.
Theresa May was due to speak in Florence where reports suggested she would outline a planned two-year transition period to help businesses adjust after Britain leaves the EU in 2019.
The dollar has also been struggling globally amid tensions on the Korean peninsula.
Figures showed August's sales growth in Britain was better than had been forecast, prompting the market boost.
The Bank of England kept interest rates at 0.25 per cent, in September but it signalled that there could be a rise in the future, which sparked an another upturn in the pound's fortunes.
The Bank last increased rates from 5.5 per cent to 5.75 per cent in July 2007.
By March 2009 they had been slashed to just 0.5 per cent as the financial crisis sent the world’s banking system into meltdown.
Rates fell again last summer — to 0.25 per cent — after the EU Referendum.
The Bank, led by Governor Mark Carney, announced September rates were being held at 0.25 per cent.
But minutes from its rate-setting meeting revealed its nine-strong panel fear a rise may have to be announced soon.
CASH IN How to get the best deal on YOUR holiday money...
How to get the best holiday money rate
WE spoke with Hannah Maundrell, editor-in-chief at money.co.uk to find out how you can guarantee the best rate when you go on holiday
- Don’t buy cash at the airport – you’ll always be able to beat the rate with a bit of forward planning
- Compare travel money companies online – Factor in delivery costs and choose the option that gives you the most cash to spend on holiday. If you’ve left it until the last minute order online for airport collection so you get the best of both worlds.
- Use comparison tools – MoneySavingExpert’s TravelMoneyMax enables you to compare pick-up and pre-order rates.
- Don’t pay for travel money with a credit card – it’s likely you’ll be charged a cash withdrawal fee which adds to the cost.
- Top up a prepaid card to lock in your rate now – Choose your card and read the T&Cs carefully as some apply hefty fees. WeSwap, FairFX and Caxton FX are all worth checking out.
- Always choose to pay in the local currency rather than sterling – This will help you avoid sneaky exchange fees
MORE ON HOLIDAY MONEY
We pay for your stories! Do you have a story for The Sun Online Money team? Email us at [email protected] or call 0207 78 24516