Welcome to Pure FX's latest update of the US dollar to pound interbank exchange rate!
The greenback strengthens versus sterling! The US dollar to pound interbank exchange rate has neared its highest in 3 weeks today, or since January 22nd, at 0.7739.
By contrast, back on January 27th, the pound was at just 0.7570 versus the buck. So it's since risen by +2.23% or +2.5 cents.
To put this into context, US$250,000 at today's interbank exchange rate would be worth £193,475. This is +£4,225 more than on January 27th!
So if you're a UK business owner importing US goods to Britain for your company, this may help you to transfer money to the USA to buy your products.
US Dollar to Pound Rate Rises, on Trump Trade War Concerns
The US dollar to pound interbank exchange rate has neared this 3-week high, because there are concerns that US president Donald Trump's trade war with China may continue.
For instance, last week Mr. Trump tweeted that he won't meet China's president Xi Jinping, before a March 1st deadline to resolve their trade dispute.
This week, US negotiators will press China to respect America's intellectual property rights, which China insists it already respects.
This has lifted the US dollar, because if the trade war continues, America stands to win, as the world's largest, strongest economy!
USD vs GBP Strengthens, as Global Growth to Slow
Moreover, the US dollar has also climbed against the pound, because it's forecast that global economic growth will soon slow.
For example, last week the European Commission (EC) cut its predictions for the Eurozone's GDP growth for 2019 by -0.6%, to just 1.3%. Meanwhile, China's economy expanded by the slowest pace in 25 years in 2018.
As a result, financial markets may seek refuge from this uncertainty in large, stable economies, where they're guaranteed to get a return on their investments.
This has lifted the US dollar, as the backbone of the world’s financial system!
Greenback Jumps Versus Sterling, as Brexit Deadline Nears
What's more, the buck has also flown higher versus the pound, because the UK's Brexit deadline is drawing near, with no deal yet agreed.
To be specific, the UK will crash out of the EU in less than 50 days, on March 29th, if prime minister Theresa May doesn't negotiate a deal in the next 7 weeks.
Last week, Bank of England (BoE) Mark Carney warned of the "fog of Brexit", and said that "We do not know what form of arrangement could be struck."
This has weakened the pound, because if the UK crashes out of the EU, it's widely thought that the UK's GDP growth will slow sharply!
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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.