Pound to dollar exchange rate – Sterling falls against the US currency as November interest rate hike called into question
A deputy governor at the Bank of England, argued that a November rate hike is an “open question” due to the UK's economic outlook
THE POUND skidded towards a two-week low against a stronger dollar amid growing uncertainty over whether the Bank of England will raise interest rates next week for the first time in over a decade.
A pound would get you 13112 dollars as of 8am – a drop compared to the same time yesterday of 1.3131.
Connor Campbell, a financial analyst at SpreadEx, said: “Cunliffe, a deputy governor at the Bank of England, argued that a November rate hike is an “open question” due to the UK’s economic weakness, further undermining the hawkishness the central bank showed over the summer.
“The pound could well be in for a nervy few weeks, then, with the interest rate situation seeming to only get murkier as the November meeting grows closer.”
Most strategists said, though, that the main reason for the pound’s weakness on Tuesday was broad dollar and euro strength.
Against the euro, sterling slipped as much as 0.8 percent to 89.69 pence, with investors focused on a European Central Bank policy decision on Thursday.
Despite getting a modest boost from signs of progress in talks over Britain’s departure from the European Union in recent days, longer-term worries about the UK’s economy and political stability have pre-empted any major gains for the pound.
The Reuters poll found that economists saw a 30 percent chance Britain will leave the EU without a trade deal when two-year divorce talks end in March 2019, up from 25 percent in a September poll.
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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