Welcome to Pure FX’s latest update of the US dollar to pound interbank exchange rate.
The greenback flies higher versus sterling!
The US dollar to pound interbank exchange rate has hit 0.8212 today, less than -1 cent from its highest in 3 decades, or since the mid-1980s.
By contrast, the buck was as weak as 0.79 against the pound on February 1st. Hence, it’s since strengthened by +3 cents, or +3.94%.
To put this into context, a $250,000 transfer to the UK would hence be worth +£7,800 more today than 5 weeks ago.
(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.)
US dollar may strengthen against pound, as UK retail sales drop
What’s more, looking ahead, the US dollar could continue to climb against the pound. This is because:
1. UK retail sales fell -0.2% between December and February, the 1st fall in a 3 month period since 2012.
This could weaken the pound, because if UK retail sales decline, the UK economy as a whole may slow down.
2. UK house prices rose +5.1% in February compared to a year ago, according to Halifax, the least since July 2013.
This may drag down sterling, because if UK house prices grow more slowly, Brits may feel less rich, and spend less.
3. New Bank of England policymaker Charlotte Hogg has failed to mention that her brother works for Barclays.
This could weigh on the pound, because Ms. Hogg’s mistake brings into question the Bank of England’s credibility.
With all this in mind, the US dollar to pound interbank exchange rate could soon exceed its 3-decade high!
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We’ll tell you when the US dollar strengthens against the pound.