Fri 29th June 2012
In this post I want to answer the question: Is the exchange rate good in June 2012? This might be useful if you want to change currencies, either because you’re buying a home abroad or emigrating, but want to wait until the best possible rate becomes available.
It’s difficult to answer this question without knowing what currencies you want to trade. For instance, while the pound might be strong against the euro right now, it might be weak against the Australian dollar. Similarly, the US dollar might be strong against the euro, but if you’re selling euros to buy dollar that isn’t so good for you.
So I can’t say ‘Yes’ or ‘No’ to this question without more information. However, what I can do is provide a brief overview of how the major currencies are doing at the moment, which will hopefully cover all bases regardless of what currencies you're changing. Of course, if you’d like more information about a specific pair, then please feel free to get in touch.
Pound to euro
For people changing pounds to euros in June 2012, the exchange rate is good. At the time of writing, it’s at 1.2450, which is just 50 cents short of the 1.25 point that’s the pound highest rate against the euro since 2008. In other words, compared to where the pound’s been since 2008 (which includes as low as 1.10) you’d be hard pressed to do better right now.
US dollar to pound
For people changing US dollars to pounds, the June 2012 exchange rate is also good. Right now it’s at 0.65 or so, meaning for each 1 USD you trade you get 0.65 UK pence, which is the highest rate since mid 2010. This compares to last August, when a standoff about the debt ceiling led the US to the brink of default, and the USD to 0.59 against the UK pound. So right now, yes, you’d again be hard pressed to do better.
Australian dollar to pound
Last but not least, the June 2012 exchange rate is also good for people changing Australian dollars into pounds. The present rate is 0.65 or so, which, if you compare it to the pre-financial crisis rate of 0.37, is an astonishing climb in value. In fact it’s something like a 58.0% gain over four years – certainly advantageous.
Get in touch
As I mentioned at the outset of this post, it’s impossible to tell you if the exchange rate is good for you without knowing your circumstances, such as which currencies you want to trade. If you’d like more information then, get in touch direct at foreign exchange specialist Pure FX to receive more personal guidance. We’d be delighted to help.