Pound to dollar exchange rate – sterling rises to four-week high after Brexit negotiation boost
An announcement about the progression of Brexit talks boosted the pound as it climbed to 1.3309 against the dollar
THE pound has soared to its highest level against the dollar in four weeks after the European Union's chief Brexit negotiator said he is ready to speed up negotiations with Britain.
Sterling rallied by around 0.8 per cent following yesterday's announcement and reached 1.3309 against the dollar at around 8am this morning.
It means quid would get you $1.33 as of 7.30am - compared to $1.30 earlier this week.
The announcement eases concerns in the financial markets about a lack of progress in the negotiations.
On Tuesday Michel Barnier said that the agenda and dates for the next round of Brexit talks would be set “in (the) next few hours or days”.
It comes amid expectations that interest rates will rise on Thursday.
The Bank Of England's Monetary Policy Committee said in September that "some withdrawal of monetary stimulus was likely to be appropriate over the coming months".
Despite the recent rises Sterling is down 11 per cent against the dollar compared with before the EU Referendum of June last year.
But this means tourists coming here get more bang for their buck.
Travel guru Lonely Planet is urging holidaymakers from overseas to "reap the rewards" of currency exchange rates while the UK Government "busies itself with Brexit".
Sterling is down 14 per cent against the euro and 11 per cent against the dollar compared with before the EU Referendum of June last year.
The latest edition of Lonely Planet's Best in Travel advises readers to "make the exchange rate work even harder" by heading to Devon, Cornwall, Bath, York and Edinburgh.
The travel guide adds: "The most likely scenario is that the UK stays affordable to international visitors - at least until a true picture of the post-Brexit landscape emerges."
It lists the UK as number seven on its table of the best value countries to visit next year.
More fluctuations in the pound to dollar exchange rate are expected as US investors speculate on who will become the next head of the Federal Reserve - the American version of the Bank of England.
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.
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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