Welcome to Pure FX's latest update of the pound to US dollar interbank exchange rate!
The pound to US dollar interbank exchange rate soars! Sterling has hit 1.3211 versus the greenback today, its highest in 15 weeks, or since October 12th 2018.
By contrast, back on January 2nd this year, the pound was as weak as 1.2609 against the buck, so it's since strengthened by +4.77%, or over +6 cents!
To put this into context for you, at today's interbank exchange rate, £250,000 in US dollars would be worth $330,275, or +$15,050 more than on January 2nd!
So if you're a Brit moving to the USA in 2019, this may be helpful information for your money transfer.
US Dollar Weakens, as Trump Re-Opens US Government
Sterling has reached this 15-week high versus the greenback, as last Friday US president Donald Trump signed an agreement to re-open America's Federal government, after 38 days closed.
Ordinarily this would strengthen the US dollar, yet Mr. Trump's agreement re-opens the government for just 21 days, up to February 15th.
Moreover, Mr. Trump added that it's "in no way a concession" to his Democratic opponents, who refuse to fund Mr. Trump's border wall with Mexico.
As a result, the US dollar has weakened, as the US Federal government may close again soon!
Greenback Falls, as Fed to Keep Interest Rates on Hold
What's more, the pound to US dollar interbank exchange rate has also reached this 15-week high, as it's widely thought that the US central bank, the Federal Reserve, will keep interest rates on hold at 2.25%-2.5% this week, and possibly for all of 2019.
This Wednesday 30th, the Fed announces its January interest rate decision, in which chairman Jerome Powell may acknowledge growing risks to America's economic growth.
This has weakened the US dollar, since when America's keep interest rates on hold, it's less profitable to invest in American assets, thus cutting demand for the buck!
Pound Gains, as MPs to Hold 2nd Brexit Vote
Moreover, the pound has also risen against the US dollar, because in the UK on Tuesday 29th, MPs in Parliament hold their 2nd vote on prime minister Theresa May's Brexit deal, in which MPs are widely forecast to vote down the deal again.
As a result, Parliament will come close to taking control of the Brexit deal, in which it's thought that MPs will pursue a much "softer" Brexit, and may extend the UK's "Article 50" negotiating window.
Just last week, Austria's Chancellor Sebastian Kurz said that he'd be open to extending Article 50 by 3 months, thereby boosting sterling versus the buck!
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Please bear in mind, this article is Pure FX’s opinion only and does not constitute advice. Moreover, the exchange rates referred to in this article are the interbank rates, which are the rates at which banks and financial institutions buy and sell currency to each other. Therefore these exchange rates cannot be accessed by individuals or SMEs, and are not the same rates that Pure FX can offer. To get a free exchange rate quote, call us on +44 (0) 1494 671800, or email firstname.lastname@example.org.