Pure FX Blog

12 September 2017

Pound Nears 1-Year High Versus US Dollar, as Hurricanes Weigh on USA

The pound to US dollar interbank exchange rate has neared its highest since September 15th 2016 today, at 1.3191, as Hurricanes Irma and Harvey have damaged the US economy. Image credit: Wayne Langley.

The pound to US dollar interbank exchange rate has neared its highest since September 15th 2016 today, at 1.3191, as Hurricanes Irma and Harvey have damaged the US economy. Image credit: Wayne Langley.

by Peter Lavelle

Welcome to Pure FX’s latest update of the pound to US dollar interbank exchange rate.

Sterling soars versus the greenback!

The pound to US dollar interbank exchange rate has hit 1.3191 today, very near its highest in 1 year, or since September 15th 2016.

What’s more, sterling could rise further against the greenback, looking ahead. Here’s why:

1. The US dollar may fall, because Hurricanes Irma and Harvey have caused up to $290 billion of damage to Texas and Florida, according to AccuWeather.

2. The greenback could drop, because there’s less than a 40% chance that the Federal Reserve will hike interest rates again in 2017, says CME’s FedWatch.

3. The buck may weaken, because bullish Fed Vice Chair Stanley Fischer has resigned, citing ill health, thereby cutting the odds that the Fed will hike interest rates further this year.

4. The dollar could lose out, because North Korea’s foreign ministry said recently that it “will cause the US the greatest pain it had ever gone through,” thus lifting nuclear tensions.

5. The greenback may dip, because President Donald Trump has so far struggled to cut taxes in America or implement an economic stimulus, so weighing on the USA’s GDP growth.

With all this in mind, the pound has neared this 1-year high versus the US dollar today!

Get a free pound to US dollar exchange rate quote

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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 peter.lavelle@purefx.co.uk.

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