Welcome to Pure FX’s latest update of the pound to US dollar interbank exchange rate.
Sterling strengthens against the greenback!
The pound to US dollar interbank exchange rate has hit 1.2431 today, its highest in 3 weeks, or since February 27th.
By contrast, the pound was as low as 1.2153 on March 14th. Hence, it’s since risen by +2.28%, or almost +3 cents.
To put this into context, a £250,000 transfer to the USA would hence be worth +$6,950 more today than on March 14th.
(Please bear in mind, this refers to the interbank rate. These rates are only available to large banks and institutions. To get our best exchange rate, get a free quote.)
Sterling may rise versus US dollar, as Fed unlikely to accelerate interest rate hikes
What’s more, looking ahead, the pound could continue to climb against the US dollar. Here’s why:
1. America’s central bank, the Federal Reserve, has said that its interest rate hikes will be “gradual”, even though it lifted interest rates to 0.75%-1.0% last week.
This could weaken the US dollar, because the Fed’s remarks have disappointed investors who’d hoped that the Fed would lift interest rates faster this year.
2. 76% of UK finance firms think that the UK economy will grow as fast as the rest of the G7 this year, in spite of Brexit, according to a new Lloyds Bank poll.
This could lift the pound, because the Lloyds poll suggests that the UK economy will perform just as well as other major economies in 2017, even as we leave the EU.
With this in mind, the pound to US dollar interbank exchange rate could exceed its 3-week high!
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