Should You Buy Your Sterling Travel Money Now?
If you are planning a trip to the UK in the next couple of months, now may be the time to stock up on your British currency. At the moment, the pound sterling is trading at its lowest levels compared to the dollar for decades. That means, if your own currency is the US dollar, the rate is moving in your favor.
The interbank rate has been between $1.55 and $1.60 (for each £1) for a little over a week. That's compared to the weak dollar rate of $1.80 to $1.99 per pound that has prevailed for more than a year. If you think a few cents doesn't make much of a difference, look at it this way. Last June, when the pound reached a high of $1.995, $100 would have bought you about £50.12. This morning, when the day's low was about $1.57, that same $100 would have bought you about £63.40. Quite a difference - enough for a country pub meal with a pint.
I don't claim to be any kind of financial expert and I'm also not a big believer in carrying wodges of cash on vacation. But this looks like common sense to me. If you have the ability to stash some pounds in a safe place or to buy travelers checks in Sterling, buying your travel money now may be a good idea.
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Comments
We are planning a trip back to London for two weeks in the Fall of 2010. We are considering starting to buy pounds sterling and putting it away. I am hoping that it will go down to at least $1.30 per pound sterling. Maybe this is wishful thinking!
Hi Karen,
I certainly hope that is wishful thinking as I have lived in the UK for 27 years and it has never been that low. If it falls that low, the whole world might be in too much trouble to travel anywhere! I’m not a financial expert and if you are serious about holding out for such a low figure, I would check with someone who knows more about financial markets than I do. But my gut instinct is you’d be better off whistling Dixie than waiting for the pound to fall that low.
Why not put your question to my forum - the link is near my picture - and see what kind of response you get there.
In 1985 sterling almost reached parity with the dollar. It went, I think, to $1.03. Hang on to your hats!
Tony