Pound to dollar exchange rate – sterling slides against the US currency
UK Chancellor Philip Hammond's pledge to set aside £3billion for a 'no-deal' Brexit in his November budget
STERLING slumped against the dollar this morning following Chancellor Philip Hammond's pledge to set aside £3billion for a "no-deal" Brexit.
The pound slid by 0.07% on Thursday trading at 1.3312 against the US currency.
Britain's Brexit minister David Davis said on Tuesday that reaching a deal was the most likely outcome of talks, but added the British government was prepared for no agreement with the bloc.
May met with senior members of her ministerial team on Monday amid expectations that she will offer the European Union more than she committed to during a speech in Florence in September.
That disappointing speech failed to provide a breakthrough in the stalled negotiations.
Ministers had reportedly agreed to make a financial offer that would increase May's existing commitment, although there were differing accounts, which investors said was keeping a lid on any gains for the pound.
The Independent news website said May's opening offer could double to around 40 billion euros but it gave no details, while the BBC reported that no specific amounts had been discussed during the meeting.
"It's not a done deal yet by any means. I remain pessimistic and think there could be significant disappointment that would lead to a lower pound," ACLS Global chief strategist Marshall Gittler said.
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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