Aldebaran

I just saw this mentioned on the tv - not good news for anyone looking to transfer pounds to dollars.

CathnPaul

do you have a link???

Aldebaran

http://www.bloomberg.com/apps/news?p...hd0&refer=home

Vash the Stampede

www.xe.com

Amazulu

To the USD maybe. Against the GBP it's been much stronger in recent times.

OzTennis

A few weeks ago it was around $2.50, it has moved against the £ to low $2.40's, that's a significant recent trend in my book:

:: Australian Dollar: The Aussie dollar broke through 80 cents in early Sydney trade yesterday to reach its highest level since 1996. The move began in late U.S on the back of a buoyant stock market and another increase in demand for Aussie Yen. The initial move above 80 cents was relatively short lived however with local investors taking profit pushing it back to 0.7960 in afternoon trading. Offshore markets appetite for high yielding currencies continued overnight with the AUD climbing back above 80 cents to retest yesterday’s highs. With no Australian economic data due the Aussie is likely to remain well supported on dips today with 0.7980 expected to hold heading into tonight’s U.S interest rate decision.

- We expect a range today in the AUD/USD rate of 0.7980 to 0.8030.

:: Great British Pound: The Pound Sterling received a much needed boost overnight in the form of increasing consumer prices. UK inflation rose 2.8% over the last year, more than the 2.7% rate expected by most economists increasing the likelihood of further interest rate rises in the region. The GBP/USD rallied from 1.9430 to reach an eventual high of 1.9620 in late U.S trading and seems set to gain further ground in Asia today. The cross rate also improved overnight overcoming another move higher in the Aussie dollar. After exchanging below 2.4200 yesterday it opens in Sydney this morning back above 2.4400 having momentarily traded near 2.4500 in Europe.

- We expect a range today in the GBP/AUD rate of 2.4320 to 2.4420.

The UK budget (well one of 2 they do p.a. now) is being delivered today and there are stronger prospects of UK interest rate rises which would in theory strengthen the £ against the A$. Interest rates are set separately by the Monetary Committee of the Bank of England which meets each month but the inflation rises, changes in the budget etc may force them to increase I/R's the next time or the time after they meet.

Time will only tell whether the £ gets stronger or weaker against the A$! My gut feeling though is that if you were able to get $2.50 or just over recently then you have done well because I don't see these levels in the next few months.

OzTennis

Amazulu

OP said said strongest since 1996. I was changing GBP at 2.35 last year. Like I said, maybe against the USD but not the GBP, which is of most interest to people on this site.

OzTennis

Yeah, quite right, I'm talking at cross purposes, it has moved against £ but not as you say to lowest levels since 1996 (i.e. high $2.20's, low $2.30's). The rest I just added as a commentary on what's happening and likely to happen. I've seen everything between $1.33 (1980) and $3.0297 (late 90's) so this moving around between $2.30 and $2.50 is a mere hiccup or blip!

OzTennis

cadman

I bought in £95k (forward contract) at $2.52 in Feb, maturing yesterday.

Reckon I "made" $10k or rather would have "lost" $10k if I had waited.

<Smugness rating of this reply................9.5/10 !!!!>

Andy

tracey.d

I've been following the exchange rate for a couple of years now. At one point last year, and I'm sure someone could verify this, the rate was 2.28 A$ to the £.

I have seen it as high as 2.52 recently. I'm ready to transfrer my money now and don't know what to do? It's 2.44 now but has moved up slightly since last Thursday. Should I change now or wait to see if it goes back up?

I know it's a risk but as I'm not actually going until end of August I can wait. I would hate to lose out though!!!

Have even considered changing half my money now and sitting on the rest to see what happens!

Tracey

Simba

We are in a simular situation to you Tracy, thinking of changing enough to get us started in a rental and buy stuff we need, then leaving the rest in the UK and hope the rate goes up to 2.5.

Neil

tracey.d

It's a tough decision because it's such a big gamble. As I said, I've been watching the rate for ages and I've never seen it so high. That's what concerns me more than anything.

If I'd seen it hit 2.5 a few times I'd be tempted but haven't seen it go above 2.45 before. I'd be happy getting that to be honest. I'll keep on watching for the time being and change it when my bottle goes

esperanza

Our plan is to take only what we need and leave the rest waiting for a 2.5 exchange. As soon as it hits that, it will all go.
Although I do need to do some sums, as it isn't getting much in the way of interest at the moment, so it might be better to take the hit of a lower rate in exchange for earning more interest in Oz than in UK.

tracey.d

yes, I've thought about that too. Is the interest rate for savings accounts better than here? I think I'm getting about 5% at the minute.

esperanza

It looks quite easy to get above 6% in Australia with a standard savings account. There are higher rates with more complex rules - monthly payments, caps, limits, linked accounts etc. But generally the rates are a bit higher than the UK.
So I need to do some sums and see how much 1% extra interest is against a .1 drop in exchange rate. (Eg do I go with $2.4 earning 6% or leave it earning 5% to wait for $2.5) Bloody maths!