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Repatriating from the US? Why USD/GBP Gains Could Benefit You
Published: 2 Oct at 6 PM Tags: Pound Sterling, Dollar Exchange Rate, Currency Exchange, UK, Exchange Rates, Economy,
If you’ve been living in the US but have plans to return to the UK, the current increase in the US Dollar to Pound Sterling exchange rate could leave you thousands of Pounds better off.
Over the last few months the US economic recovery has stepped up a gear, with sectors from employment to housing and construction all showing signs of improvement.
In the first quarter of the year the US economy contracted by 2.1%, but in the second quarter it rebounded with growth of 4.6%. Current projections put third quarter growth above 3%.
Since the onset of the global economic crisis the Federal Reserve (the US central bank) has cut interest rates to record lows in order to improve conditions for borrowers. However, the more the economy improves, the closer the Federal Reserve gets to increasing borrowing costs.
The prospect of higher interest rates has supported the US Dollar in recent weeks and the currency has broadly strengthened.
Although the Pound managed to advance to an almost 2-year high against the US Dollar in the wake of the Scottish referendum, the USD/GBP exchange rate has been strengthening again.
Anyone moving back to the UK after spending time living in the US is likely to have foreign currency exchange requirements, such as transferring savings accrued in US Dollars.
By moving your money when the USD/GBP exchange rate is stronger, you can get more Pounds for your Dollars.
For example, in the last month the USD/GBP exchange rate has hit lows of 0.6020 pence per Dollar and highs of 0.6212 pence per Dollar.
If you had savings of $50,000, you would get £30,100 at the lower exchange rate and £31,060 at the higher – a difference of almost £1,000. The more you have to transfer, the more of a benefit you’ll see.
Anyone planning to repatriate from the US to the UK should focus on announcements coming from both the Bank of England (BoE) and Federal Reserve in the weeks ahead.
If it appears that the Fed will increase interest rates before the BoE, the US Dollar could extend gains against the Pound – making your savings worth more money.
For support and guidance regarding picking the best time to make a foreign currency exchange get in touch with a reputable foreign currency broker.
Over the last few months the US economic recovery has stepped up a gear, with sectors from employment to housing and construction all showing signs of improvement.
In the first quarter of the year the US economy contracted by 2.1%, but in the second quarter it rebounded with growth of 4.6%. Current projections put third quarter growth above 3%.
Since the onset of the global economic crisis the Federal Reserve (the US central bank) has cut interest rates to record lows in order to improve conditions for borrowers. However, the more the economy improves, the closer the Federal Reserve gets to increasing borrowing costs.
The prospect of higher interest rates has supported the US Dollar in recent weeks and the currency has broadly strengthened.
Although the Pound managed to advance to an almost 2-year high against the US Dollar in the wake of the Scottish referendum, the USD/GBP exchange rate has been strengthening again.
Anyone moving back to the UK after spending time living in the US is likely to have foreign currency exchange requirements, such as transferring savings accrued in US Dollars.
By moving your money when the USD/GBP exchange rate is stronger, you can get more Pounds for your Dollars.
For example, in the last month the USD/GBP exchange rate has hit lows of 0.6020 pence per Dollar and highs of 0.6212 pence per Dollar.
If you had savings of $50,000, you would get £30,100 at the lower exchange rate and £31,060 at the higher – a difference of almost £1,000. The more you have to transfer, the more of a benefit you’ll see.
Anyone planning to repatriate from the US to the UK should focus on announcements coming from both the Bank of England (BoE) and Federal Reserve in the weeks ahead.
If it appears that the Fed will increase interest rates before the BoE, the US Dollar could extend gains against the Pound – making your savings worth more money.
For support and guidance regarding picking the best time to make a foreign currency exchange get in touch with a reputable foreign currency broker.
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Source: moneytransfer.co.uk