Pure FX Logo arrow Reviews On Feefo Pure FX Logo Exemplary Service In-Depth Knowledge We're Jargon Free Same-Day Transfers Better Exchange Rates Purefx_currency_exchange Personal Transfers Business Transfers FCA Authorized Personal Service Trusted Brokers Get A Quote Register With Us Make A Transfer Seller Transfers Contract Definitions Read Our Top Tips What Influences Exchange Rates Glossary Frequently Asked Questions Contact Us

How a strong pound affects foreign currency exchange rates

GuidesHow a strong pound affects foreign currency exchange rates

The UK commands a third of all money transfers made on the foreign exchange, with the US a close second. Traditionally, the pound and US dollar are seen as two of the most highly valued currencies in the world.

The sheer volume of transfers taking place on the foreign exchange means there are daily fluctuations in the currency exchange rate even when the economic climate is stable. This is because pound sterling is freely bought and sold on the foreign exchange across the world. When traders are buying pounds, the value of the pound rises and it is strong. When traders sell, the value drops and it becomes weaker. 

This constant trading back and forth leads to fluctuations in the day-to-day currency exchange rate, but looking at the overall performance of the pound, it is quite a strong base currency. People assume a strong pound puts British businesses in a strong position, but a good currency exchange rate can actually work against those exporting goods.  British manufacturers have often suffered from a strong pound.

For example, if you are a UK company exporting manufactured goods to America at a unit cost of £100 each, then a strong pound will see the product become more expensive in terms of US dollars, even though its UK price remains the same.

By using independent foreign currency brokers like us at Pure FX in preference to banks, fluctuations in currency values can be coped with, allowing companies to trade abroad without incurring heavy losses.

Get a Quote
Feefo service

What Our Clients Say

Read all the reviews at Feefo.com

Why Us

FCA Authorised

Authorised by the UK's Financial Conduct Authority, so your money is highly secure.

Exceptional Service

We have received Feefo's Gold Trusted Service Award 3 years in a row

Same Day Transfers

Receive your money in your destination bank account the same day you send it, for most mainstream currencies.

Highly Competitive Exchange Rates

Get bigger savings, with highly competitive exchange rates guaranteed!

Dedicated Personal Service

To guide you through the transfer process, and keep you up-to-date with the changing exchange rates.

Trusted Foreign Exchange Broker

Since we were established in 2006, we've transferred money for thousands of satisfied clients.

How It Works

  • Quote

    Use our form to get a free exchange rate quote, and find out how much you could save with Pure FX.
  • Register

    We'll be in touch to give you your exchange rate quote, ask you any further questions and tell you how the transfer process works.
  • Transfer

    From buying a property abroad, to making business transfers, or online selling - we have you covered.