Pound to dollar exchange rate – sterling in dip against US dollar
After yesterday's close at 1.3205 dollars to the pound, sterling today slumped to 1.3186, as of 8.30am
THE value of the pound dipped against the dollar this morning, with sterling down 0.14 per cent in early trading.
After yesterday's close at 1.3205 dollars to the pound, sterling today slumped to 1.3186, as of 8.30am.
The dollar's relatively strong performance comes ahead of the United States Federal Reserve's announcement on the US budget balance for September.
Taking place at 7pm GMT, the announcement will reveal the size of the deficit the US government ran last month.
The September announcement, regarding US government expenditure in August, was more positive than analysts had predicted - as was the announcement the month before.
This is important for the value of the pound, as good news for the US economy will often cause increases in the dollar's relative value, in turn impacting sterling's performance.
The pound is also affected by domestic affairs, with Brexit a source of worry for some investors.
Recent news has increased economic uncertainty, which can give the market some jitters.
Draft conclusions of the upcoming EU summit, seen by the Financial Times, revealed leaders' plans to approve internal discussions on a post-Brexit relationship with the UK.
But according to a snap poll, three quarters of Brits would prefer a "no deal" Brexit to a bad deal.
On Monday, Tory MPs rallied around Theresa May after a plot to oust her became public, which seemed to boost confidence.
In a private Tory WhatsApp group, Foreign Secretary Boris Johnson said: "We have JUST HAD AN ELECTION and people are fed up with all this malarkey.
"Get behind the PM. Ordinary punters I have spoken to thought her speech was good and anyone can have a cold."
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
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