The dollar and the £

ferf1223

sonicmouse wrote: »

Obviously, there are some patterns year on year were the dollar rises and falls. Any ideas ?

Here you go...knock yourself out.

http://www.oanda.com/currency/historical-rates/

Doshwaster

sonicmouse wrote: »

Hi all,

The £ rate against the $ has been drastically falling recently, It's gone down from 1.60 to 1.56 in just a few weeks!

It depends on how you define "drastically". That fall is only 2.5% so if you are planning on spending £1000, that's a difference of £25. Hardly worth losing sleep over.

Yes, the pound is heading in the "wrong" direction if you are heading to the US (but not if you are an American coming here!). but interest rates change all of the time for any number of reasons. In the last 10 years I remember the pound being $2 but I also remember it being less than $1.40. If you are that worried then you should buy your dollars in blocks to average out your rate.

tofu

sonicmouse wrote: »

The £ rate against the $ has been drastically falling recently.

If Im going on Holdiday in March, is it better to my dollars now or then? I heard the BoE has suggested making the £ more weak to encourage exports..

The $ / £ rate is as likely to rise as it is to fall in the near future. People's expectations of economic / monetary developments are already reflected in today's price. Don't believe anyone who tells you otherwise.

If you want to be certain that you are not adversely affected, you should buy the $ you need now - that's called hedging. But don't buy more $ than you are reasonably certain to spend, because exchanging back and forth will cost you commission every time. And, of course, in the US you can pay by credit card almost everywhere, so you won't need a lot of cash - I wouldn't buy more than $100 before a typical trip. A good credit card is usually cheaper than exchanging currency. You can also use your credit card at an ATM in the US. Just don't take any £ to the US hoping to exchange them. You'd pay a lot more, if you're lucky to find someone who accepts them at all.

scotty1971

i wish people would stick there crystal balls where the sun don't shine!! just don't answer the original post and leave your balls out of it.

photome

scotty1971 wrote: »

i wish people would stick there crystal balls where the sun don't shine!! just don't answer the original post and leave your balls out of it.

do you mean their crystal balls

snuffy

tofu wrote: »

The $ / £ rate is as likely to rise as it is to fall in the near future. People's expectations of economic / monetary developments are already reflected in today's price. Don't believe anyone who tells you otherwise.

If you want to be certain that you are not adversely affected, you should buy the $ you need now - that's called hedging. But don't buy more $ than you are reasonably certain to spend, because exchanging back and forth will cost you commission every time. And, of course, in the US you can pay by credit card almost everywhere, so you won't need a lot of cash - I wouldn't buy more than $100 before a typical trip. A good credit card is usually cheaper than exchanging currency. You can also use your credit card at an ATM in the US. Just don't take any £ to the US hoping to exchange them. You'd pay a lot more, if you're lucky to find someone who accepts them at all.

thanks for your message, do you know if there is a maximum withdrawal on a credit card in the US? I'm going soon and will take the Halifax Clarity to withdraw cash (hopefully $1500), I have read (thanks MSE!) it is the better card to use abroad...thank you

dzug1

snuffy wrote: »

thanks for your message, do you know if there is a maximum withdrawal on a credit card in the US? I'm going soon and will take the Halifax Clarity to withdraw cash (hopefully $1500), I have read (thanks MSE!) it is the better card to use abroad...thank you

Yes there is a limit

Firstly Halifax will set one - you'll need to check your T&Cs

Secondly, each cash machine (or at least each bank) will have its own limit, which will vary. $1500 is very unlikley. To get round this (up to Halifax' own limit) you'll need to make multiple withdrawals.

Do you really need $1500 cash? If you don't using the Halifax card for purchases may be a better idea.

Doshwaster

dzug1 wrote: »

Do you really need $1500 cash? If you don't using the Halifax card for purchases may be a better idea.

If you are going to be withdrawing that amount of money check how much your travel insurance covers you for.

Honestly, you don't need that much cash in the US. Apart from tips you can just about live on plastic - it's perfectly normal to buy a coffee on a credit card. Just watch out for taxis though. Depending on the city, some may not accept them and and even if they do some drivers may be reluctant to do so.

snuffy

i need the cash unfortunately, looks like it might be worth getting the cash in the UK as it seems some ATM's in the US charge for withdrawals. thanks anyway!

Doshwaster

snuffy wrote: »

i need the cash unfortunately, looks like it might be worth getting the cash in the UK as it seems some ATM's in the US charge for withdrawals. thanks anyway!

In which case you are probably better off getting it here. You should be able to get a decent rate by shopping around. It's below the cash amount that you need to declare to US Customs.